Chrysler to form unholy alliance with Hyundai or Mitsubishi?

The newly independent Chrysler is pulling all stops to turn around its ailing car business. One of the plans involves an alliance with Hyundai or Mitsubishi that could involve the companies building engines for each other or share platforms. Frank Klegon, Chrysler executive vice president of product development, has said that they are still in discussions with both companies and no deal has been finalised yet.

Klegon indicated to the Detroit Free Press that a partnership with Hyundai would be more likely despite Chrysler having links to both Asian carmakers in the past. The ambitious goal of doubling its American car sales in the next five years has forced Chrysler to look outside the traditional method of simply launching new models. It’s recently signed a deal with China’s Chery Automobile to begin production of cars destined for the U.S.

Hyundai has been chipping away at the market share for domestic models and is at a critical point in terms of reputation and brand appeal. Its debatable whether Hyundai even needs Chrysler to continue its success.