DaimlerChrysler has joined forces with Hyundai and Mitsubishi Motors to develop a new family of engines.

Called Global Engine Alliance, the new venture will design, develop and engineer in-line four cylinder petrol engines for use in future vehicles manufactured by Chrysler, Mitsubishi and Hyundai.

Chrysler group president and chief executive officer Dieter Zetsche said: 'For Chrysler Group, this project represents tangible fruits of the alliance with Mitsubishi and Hyundai. Leveraging our company's global scale is a critical element of the Chrysler Group growth strategy. A venture like this could well lead to even greater co-operation.'

Each company will produce the engine for its own vehicles and production is expected to reach 1.5 million units annually. Initial production for Hyundai is expected to start in 2004 and for Chrysler and Mitsubishi in 2005.