Hyundai Not Interested in Buying Chrysler

Although Hyundai was recently regarded as the favorite company to buy Chrysler, the South Korean-based firm today denied rumors, saying that it has no plans to purchase Chrysler's assets. A few days ago, it was reported that General Motors decided to retract its offer to acquire Chrysler, with Hyundai Motor likely to buy a part of its assets, including the Jeep brand, often considered Chrysler's most valuable property.

According to Reuters, Hyundai denied rumors surrounding a potential deal between the South Korean company and Chrysler, adding that “it had no capacity for a new acquisition as it focused on completing construction of overseas plants.”

"We have no interest in whatsoever in acquiring Chrysler, including Jeep and have not engaged in any discussions with Cerberus on this matter. Our hands are full now,” Hyundai Motor spokesman Jake Jang told Reuters.

Cerberus Capital Management, Chrysler's majority owner, is currently seeking new potential partners, Renault-Nissan having been rumored to be one of them. The French-Japanese alliance, however, announced that it did not intend to purchase Chrysler or any of its assets.

Owning approximately 3 percent of the United States automotive industry, Hyundai is currently regarded as the world's number 5 largest carmaker together with its affiliate Kia Motors Corporation. Hyundai has several production facilities in the United States, China, Slovakia, Turkey and the Czech Republic, but new plants may be constructed in the near future as part of the company's plans to increase its presence overseas. For instance, Hyundai started building a new production plant in June in St. Petersburg, Russia, total costs of investments going as high as 330 million euros.