Ever since DaimlerChrysler announced that the sale of Chrysler and it’s brands (Dodge, Jeep) to another party is now an option, there has been plenty of rumours, supposed insider news as well as speculation on who the new buyer would be.
Seen as a forefront to the Chrysler purchase is General Motors, who analysts think would purchase Chrysler as a defensive move against import marques like Toyota. Analysts think purchasing Chrysler would give GM a US$9 billion value in terms of product line-up, operating efficiencies including reduced R&D and advertising costs. Stock market analysts are mixed over the issue, with John Murphy of Merrill Lynch rating GM shares as a buy, while Jon Rogers, a New York-based analyst at Citigroup Investment Research rated them as a sell. DaimlerChrysler shares remain unrated.
Some think Hyundai may be a good match for Chrysler, and Hyundai has already worked with Chrysler before on certain projects including the Global Engine Manufacturing Alliance project along with an accompanying platform, as well as rebadging Hyundais as Dodge cars in Mexico. Hyundai needs more plants in the US, something Chrysler has. Hyundai currently only has one plant in the US. Hyundai needs a V8, Chrysler has the Hemi. Chrysler used to own a 10.5% stake in Hyundai. Hyundai is good at small cars, Chrysler is not – Chrysler’s good at big cars, Hyundai isn’t.
Other speculated potential suitors are the Nissan and Renault alliance, as well as SAIC and Chery of China. Chrysler and Chery already have an agreement for Chery to assist Chrysler in building small compact cars, something that Chery does best. Foreign automakers like Toyota, Hyundai and the Chinese makes are cited as one of the reasons GM would buy Chrysler, as having a foreign Korean or Chinese marque gain access to Chrysler’s extensive dealer network would be a problem – the American companies already have problems fending off the Japanese.
Anyway, whether GM takes up Chrysler or not, they are already in some form of joint venture talks now, as General Motors might give Chrysler access to it’s GMT900 platform large-SUV, something that Chrysler does not have an equivalent in it’s line-up.
DaimlerChrysler might drop Chrysler Group