Hyundai denies Chrysler talks

The London Times reported in its Sunday edition that Hyundai Motor has joined other bidders in a competition to take over the U.S. arm of financially troubled Daimler Chrysler. But Hyundai denied the report in a press release yesterday, saying it never considered acquiring the U.S. carmaker.
According to the Times report, General Motors, still the world’s biggest car company, is also interested in buying Chrysler, a move that, experts anticipate, could speed a much-needed reduction of output by North American carmakers as the new owner shutters excess production capacity. GM was reported last week to have held exploratory talks with Daimler Chrysler executives.
Hyundai and other foreign bidders are said to be eager to secure access to Chrysler’s valuable dealer network, read the report, citing a senior banking source, who said that while Hyundai and GM were regarded as leading bidders, there were several potential buyers, including Chinese groups and private-equity firms.
Regarding the news, Korean stock analysts say Hyundai currently retains no extra funds to acquire Chrysler ― given that the nation’s top automaker has set aside massive amounts of cash for the construction of factories in Europe, currently underway, and plans to build an integrated steel mill for its steel-making arm.

By Seo Ji-eun Staff Writer [spring@joongang.co.kr]