Hyundai, the world’s fifth largest automaker, has been subject to numerous quiet rumors over the last few days about their possible intention to acquire parts of Chrysler – specifically the Jeep brand. The Korean automaker flat out denied that they have been in talks with Cerberus Capital Management over purchasing Chrysler’s Jeep brand.
“The report is not true and we are carrying out our investment as planned,” a Hyundai official said in a press release, adding that the automaker is focusing on construction of overseas factories.
Many analysts consider Jeep to be the most valuable target in the Chrysler portfolio, thanks to strong global brand recognition. Ironically, the same was said more than 20 years ago when Chrysler acquired American Motors Corporation – primarily for the Jeep brand.
“Hyundai has nothing positive to gain with a purchase of Chrysler,” Choi Dae-sik, an analyst at HI Investment & Securities, told CNBC, however.
Hyundai’s stock was down today partially in response to the rumors.
11/10, 10:29 AM
posted by:
johnnycanuck
Hyeep Wrangler?
The saddest part is Jeep’s quality would probably go up.
11/10, 11:13 AM
posted by:
jackjimturkey
The only thing more formidable than Hyundai with Jeep in its pocket would be the result of a Hyundai-BMW merger.
I’m still calling BMW or VW as the eventual Jeep buyer.
“‘Hyundai has nothing positive to gain with a purchase of Chrysler,’ Choi Dae-sik, an analyst at HI Investment & Securities, told CNBC, however.”
Not really true. If Hyundai can use its quality to serve Jeep loyalists, it can bring the brand back.
11/10, 11:14 AM
posted by:
Mutant@DCX
If they needed the Jeep brand recognition, they would have already put the seven space grille on their SUVs.
They have the Entourage, Kia Sedona, Tucson, and Veracruz. They could clone a cheaper van or Jeep, in any style, within 2 years, without the Chrysler baggage.
11/10, 11:25 AM
posted by:
hangonbig3
Hey Johnny have you ever owned a Jeep…probably not…pretty sure you were not man enough.
11/10, 11:57 AM
posted by:
johnnycanuck
Actually, I’ve owned two of them- a ‘94 Cherokee and a ‘98 Grand Cherokee. A week after trading in the ‘98 (which had less than 70k kms) I was informed by my salesman that when they went to move the vehicle for its safety inspection the transmission promptly puked its guts on the way there costing them $3500. Ironically enough we had taken it to three separate dealers complaining of clunk when coming to a stop as the transmission dropped into 1st gear and were assured each time that it was ‘normal’. The ‘94 had an even better ending as I found out the vehicles next owner opened the driver’s door one day at work and it fell off. Sorry, but those are all the manly Jeep stories I have.
11/10, 12:29 PM
posted by:
sharpie
Johnny, I think what HOB3 meant was that you have to be man enough to push the dead Jeep off the highway.
11/10, 12:46 PM
posted by:
uparms
I don’t want Hyundai to get Jeep.
I am on my 3rd Wrangler, an 05 Unlimited. Except for 1 transfer case on an 02, I am real pleased with build and quality.
There is nothing else like my Jeep and it owns the beach during my 9 month fishing seasons here in the mid-Atlantic.
11/10, 1:52 PM
posted by:
A4
theyre the 5th largest? really?
and i agree with uparms
wranglers cannot be built by the asians, they would become cheapened and flimsy, im sure of it.
11/10, 2:24 PM
posted by:
kansei
A4 –clearly you’ve never been in a TJ or especially a YJ wrangler. You cannot cheapen that plastic, I am sure of it. For the TJ, if you’ve been inside a 93-97 Dodge Intrepid and felt the center console or any of the other hard plastics you know exactly the feeling ha.
11/10, 4:18 PM
posted by:
zoomzoomer
Mutant.. Hyunkia actually have the Entourage/Sedona minivans and the Tucson/Sportage, Santa Fe, Sorento, Veracruz and Borrego CUVs and SUVs.. quite an arsenal already. What would they do with 5 more utes? They would likely gut Jeep of everything but the Wrangler and just rebadge their existing models if they bought it.
11/10, 5:15 PM
posted by:
ckron247
I don’t think they would breakup Chrysler like that, pretty much going to be all or nothing. If that was the case I think GM would have already put a bid in for Jeep itself. Considering that is suspected to be the only part of Chrysler they want to keep other the design for the Dodge ram.
11/10, 6:19 PM
posted by:
DeansterTJ
Coming from someone on his third Jeep (Wrangler), I can honestly say they are unholy pieces of total ****. They’re honest and fun, but totally built like crap. Something’s wrong when the U-joint cracks after 5000 km of ON-ROAD DRIVING for the SECOND TIME.
Garbage. Even GM could do better.