Filed under: Government/Legal, Hirings/Firings/Layoffs, Chrysler, LLC., Hyundai, Jeep, Nissan, Earnings/Financials, Renault, Rumormill
Hyundai: Newest Chrysler suitor?
On the same day that General Motors announced it would be discontinuing talks with Cerberus over a possible purchase of Chrysler, news hits by way of Reuters that a replacement suitor has sprung up. Wow, that didn't take long. The latest partner is none other than Hyundai, Korea's largest automaker. Not surprisingly, it's the Jeep brand that is again taking center stage according to these initial rumors. Everybody wants Jeep, it seems. If true, the possibility of breaking Chrysler's automotive operations into bits and pieces once again seems like a distinct possibility. What's more, after acknowledging that GM is abandoning talks of a "strategic acquisition," Chrysler's Bob Nardelli may now be back on the phone with Carlos Ghosn, head of the Nissan/Renault juggernaut, along with, presumably, anybody else who is willing to listen and has a pulse.
[Source: Reuters]
Reader Comments (Page 1 of 3)
Tourian 7:09PM (11/07/2008)
That would make more sense, considering they have an agreement with Hyundai (and Mitsubishi) to produce engines and that it was the latter that propped up Chrysler's small car development in the 70's, 80's and early 90's.
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chaseshawn 6:27PM (11/08/2008)
Koreas first engine was built in the 90s and was put in the Scoupe before that hyundia used engines from mitsubishi for the most part
ConceptVBS 7:10PM (11/07/2008)
This could get really interesting.
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Joe 7:32PM (11/07/2008)
At least, This is better situation that Chinese automaker buy a chrysler brands.
Chinese are comming!
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DA_U 11:40AM (11/09/2008)
you mean the koreans?
happy_penguin 12:12PM (11/08/2008)
If they are coming I hope they spell better than you do.
Mongo 7:36PM (11/07/2008)
A purchase of Chrysler by the UAW to create an employee owned company is the best chance to keep Chrysler intact and maintain as much employment as possible.
Nissan/Renault is the next best option as they have the car expertise to fix Chryslers small car problems and midsize car problems and Nissan would continue the Ram, the minivans, some SUV's and would continue to operate Jeep.
Nissan/Renault has the least market overlap/competion against Chrysler/Dodge/Jeep models.
Hyundai, GM and other buyers will be a disaster for Chrysler, although eliminating Chrysler may allow the survival of Ford and GM
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ConceptVBS 7:44PM (11/07/2008)
I'm gonna have to disagree. Renault/Nissan have a heavy SUV and Truck operation. Hyundai on the other hand dont have as many SUVs and NO truck operation here in the US. Their primary weapon is small to medium cars. Buying Chrysler would be perfect for them.
Joe 7:50PM (11/07/2008)
A purchase of Chrysler by the GM is not a good choice.
Minus + Minus = Double Minus
I think America may decide to 'give up' automaker industry. However, Even if bankrupt, do not sell american's industry to China. it is your enemy. EU and other country's automaker industry will be ruin
Toledo Guy 10:09PM (11/07/2008)
The UAW doesn't know how to actually run a business. The last major employee purchase of a major corporation was United Airlines. That ended in bankruptcy after the unions plundered the company. The Jeep brand will be sold off to someone. The rest of Chrysler will likely fail to attract any buyers, and wind up on the ash heap of history.
Joe 7:56PM (11/07/2008)
I expect santafe of Jeep version.
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Mr Cool 7:57PM (11/07/2008)
Either way this soap opera goes, Chrysler is going to be like a medieval village being plundered by the Vikings...all the good stuff is plucked and the rest is set ablaze.
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Willie Car 2:03PM (11/08/2008)
Actually the village was plundered by Daimler awhile ago leaving only a few treasures - Dodge Ram, minivans and Jeep - the rest, left behind like a used wench.
Sad, really sad.
Mark K. 3:54PM (11/08/2008)
Mr. Cool:
"Either way this soap opera goes, Chrysler is going to be like a medieval village being plundered by the Vikings...all the good stuff is plucked and the rest is set ablaze."
Watch out, I didn't see that all of new barbarians are being taught the old Viking wisdom in Business Schools.
They should make it mandatory in all MBA courses that students positively learn to pillage BEFORE they burn.
MemphisNET 8:03PM (11/07/2008)
Or maybe these are the same speculators that drove oil to 145$/barrel, and supported the sub-prime mortgage scene. Maybe they really know NOTHING. Chrysler is silent because their private. These are the same guys who also said Chrysler is bleeding the most, and when they did finally open up -- it turned out that they had billions upon billions of reserve funds and were creeping more towards the black than any of the Detroit three.
All of this hype is because Cerberus can't stand not getting instant money, and is starting to sweat.
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Joe 8:11PM (11/07/2008)
Oh, Hyundai officially denied that they buy a chrysler brands.
http://www.edaily.co.kr/news/industry/newsRead.asp?sub_cd=DC12&newsid=01167686586603752&clkcode=00203&DirCode=0040204&curtype=read
I can read a korean language. (but i'm not a korean)
Hyundai Spokesman said,
"We entirely, do not have any intenton that buy a chrysler or any other big 3 brands"
If you want to buy Chrysler's stock, give up. don't buy it. it was a just rumor.
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Typesbad 9:23PM (11/07/2008)
This means nothing. If they aren't planning on buying they will issue a denial. If they are planning on buying Chrysler, they will still issue a denial, That is the way the take-over game is played.
Toledo Guy 10:04PM (11/07/2008)
There is no Chrysler stock. Chrysler is privately held.
Darth Ferrari 9:46PM (11/07/2008)
Hyundai denied the news now.
They said that never interested in the big 3 and even in the future.
Which is the truth?
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Jlanfranchi 7:12AM (11/08/2008)
As soon as Nardeli entered the picture at Chrysler it was just a matter of time before he let the company spriral into a company thats crash and burning, the only product that will be left standing is Jeep......