Hyundai Enters Chrysler Talks, GM Out of the Deal

The Chrysler saga continues today with a new chapter, this time involving Hyundai, with reports informing that General Motors, one of the favorite companies to buy Chrysler, now out of the deal. Reuters writes that Hyundai Motor Co recently entered talks with Chrysler's majority owner Ceberus Capital Management for purchasing several assets of the company, including the whole Jeep brand which recently experienced very low sales.

“Hyundai Motor Co has had talks with Chrysler LLC owner Ceberus Capital Management about a potential acquisition of the struggling U.S. automaker's Jeep brand and possibly other assets, people with knowledge of the talks said on Friday,” Reuters wrote, adding that General Motors, initially regarded as favorite in the race for Chrysler, retracted its offer.

More importantly, Ceberus Capital Management is now looking for new companies to buy Chrysler, Reuters also mentioned, with Renault-Nissan likely to re-enter negotiations after the French-Japanese alliance announced in October it does not intend to pursue the deal.

General Motors has often been regarded as the potential buyer of Chrysler, with rumors surrounding the acquisition pointing to several models said to be discontinued in case the deal goes through. For instance, sources close to the deal predicted that approximately seven Chrysler models may be kept in production in case the transaction is completed, with Dodge Ram and Jeep-branded vehicles among the favorites.

Moreover, consultation firm Grant Thornton predicted that GM Chrysler's acquisition may cause a 50,000 job cut with seven of the 14 Chrysler production facilities to be closed. Dealerships could also be affected by the deal, with only the major authorized dealerships to be retained by GM in order to help expand the new company's coverage in the target markets.