The plot thickens; Hyundai may be angling for Chrysler

Hyundai and Chrysler already share their 2.4 liter "world engine" (along with Mitsubishi), and they may share much more in the future. Rumors are trickling in from all quarters about potential suitors for Chrysler, should DCX decide to cut loose its American vessel, and Hyundai is the latest one to grab headlines. The main value in purchasing Chrysler, which is suffering from crippling pension and healthcare costs, geriatric factories and indifferent product, is the dealer network.

Hyundai is making an aggressive effort in the US. The oldest thing in their fleet is the Tiburon (though it is newly-facelifted), and quality is way up. Hyundai and Kia vehicles represent good value for the money, and the instant sales organization they'd gain from a potential purchase of Chrysler would give Hyundai a further toe-hold. We're not sure how the brand change might play in Peoria, but we very seriously doubt that the rest of the Chrysler brand would be discarded just to acquire the sales organization.

There's a lot of value in Auburn Hills besides sales mooks. The Caravan and Voyager vans have been redone and are back in the game, and the LX cars still carry cachet, if not sales volume. Were the arranged marriage to occur, there would be some redundant products - such as the aforementioned vans. We're not sure how that would shake out. We bet that it costs Chrysler more to build a car than Hyundai spends, but we'd hope that the better car would win out in the corporate joust. A Sonata wearing a Chrysler badge (with some restyling, of course) wouldn't be such a terrible thing, would it?

Thanks to tipster Avinash!

[Source: timesonline]

Share This Photo X