Hyundai is the latest carmaker to enter the Chrysler spin-off rumor mill, joining industry giant General Motors as another potential suitor for the ailing Chrysler brand. The story was first reported by the UK’s Sunday Times, which cited unidentified sources for the scoop.

The key benefit to Hyundai would be Chrysler’s extensive dealer network in the US, but an official from the Korean carmaker has denied any such possibility. Reuters published a report last week that said GM was in preliminary talks to buy Chrysler or at least to create a strategic alliance for a new full-size SUV.

Investment bank JPMorgan has been hired to give advice to several potential suitors, including Hyundai and GM. This wouldn’t be the first time that Hyundai was linked to Chrysler. The two companies already share a 2.4L four-cylinder engine along with Mitsubishi, as well as several dealer service centers in the US.

Update: Hyundai has now denied it was ever considering buying Chrysler and that talks have taken place. In the meantime, it looks like GM is still keen to continue discussions. We'll keep you updated as the Chrysler saga unfolds.