Will Daimler divorce the Chrysler? Hyundai is also for the run for Chrysler ..

After GM, the rumor says that Hyundai is also in the running for Chrysler. The group DaimlerChrysler is reconsidering its options regarding the struggling Chrysler.

After Daimler-Benz bought Chrysler back in 1998, the $92 billion group became the 6th largest automaker at that time. It was also the biggest merger at that time. Although everyone initially thought its a merger, it was actually a buy-over by Daimler-Benz. There after Dr. Dieter Zetsche (also known as Dr. Z) became famous for bringing Chrysler from difficult situation. Recently, after the successful mission in US, he came back to Germany to become the Chairman of DC. Last month DC announced a job cut of 13,000 in America for the Chrysler to break-even in 2008. Also they are looking at other options.

GM was struggling but has recovered and has turned the corner. But, may be Chrysler is bit too hot for them to handle at this point. They themselves are trying to come back and they may not want another struggling brand. Hyundai is an interesting option. For one, its a Korean brand and they buying premier US car brands is a symbolic one for the future! Hyundai has improved a lot in terms of quality and stature. Recently they came 3rd in terms of quality after only the Porsche and Lexus. Toyota came fourth.

But I do feel that Toyota may be interested as well. They have a deep pocket and can buy anything they want. Do they want? who knows. Toyota is doing really well in US as well.

China’s two carmaking powerhouses, Chery and SAIC, are also thought to be eyeing developments very closely for any gaps. SAIC failed in an attempt to buy MG Rover two years ago.

Further Reading:

http://www.ashlandcitytimes.com/
http://www.msnbc.msn.com/