Hyundai Motor wants to expand its alliance with DaimlerChrysler to use DC’s large car and diesel engine technology to extend its own model range, Bloomberg News reported.

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Hyundai also wants to increase research and development links with DaimlerChrysler, which owns 10.5 percent of the South Korean car maker, Bloomberg said, citing Edward Yoon, a general manager in Hyundai’s international business development team.

Bloomberg said DaimlerChrysler has already set up two ventures with Hyundai Motor to jointly build engines for commercial vehicles and small cars as the partners try to shave design and production costs but Hyundai has little interest in co-producing small cars and instead wants to get more access to technology for larger vehicles.

“In the case of small engines, small platforms and small transmissions, I think Hyundai has great competitiveness,” Yoon told Bloomberg in an interview. “But in the case of large-sized cars, I think Hyundai should follow DaimlerChrysler and Mitsubishi.”

According to Bloomberg, Yoon said the car maker is yet to start talks with the two partners on the new areas of cooperation but is discussing an accord with Mitsubishi Motors that will generate some payments for the Korean company and help improve its brand image though he declined to elaborate.

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Efforts to expand the areas of cooperation aren’t likely to result in DaimlerChrysler raising its stake in Hyundai Motor soon, Yoon told Bloomberg.

Bloomberg reported that Hyundai this week said it wants to increase exports to the US and Europe by about 8% and 7%, respectively, in 2003 compared with this year’s targets to help counter an expected weakening of demand at home as rivals become more competitive and the effects of tax changes discourage some buyers.