South Korean manufacturer Hyundai has denied rumors in the auto media that it plans to take over the struggling Chrysler Group.
Hyundai was forced to issue the denial after a report in The Times caused a frenzy in the auto industry. The Times had said that Hyundai might be interested in Chrysler’s network of dealerships in the US not to mention huge production bases, most of which are running below capacity at the moment. But it appears that Hyundai has more than enough on its plate already, with frequent strikes in its home base of South Korea causing losses in billions, a bribery scandal and subsequent conviction for its CEO Chung Mong-koo and mounting pressure in the overseas market. The company’s vice president, Lee Yong-hoon, termed the rumors as ‘totally groundless,’ saying that the company is just not interested in bidding for Chrysler. Hyundai has oft stated that it intends to become one among the world’s top five automakers, and despite a rather chaotic 2006, seems to be planning new frontiers this year.
Media reports have also speculated that GM might also bid for Chrysler. GM still remains the world’s largest automaker by volume but has been relentlessly pursued by Toyota. Slipping market share, a jaded product line-up, overcapacity in the US - well, GM’s problems continue to pile-up and it appears unlikely that that the vehicle manufacturer might want to take on a struggling division.
US-based Chrysler was acquired by Daimler in a path-breaking merger back in 1998. But Chrysler has repeatedly dragged down profits forcing the German company’s CEO Dieter Zetsche to state that he is exploring all possible options for Chrysler, including a possible sale.
Via: Xinhua
