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Chrysler, Hyundai split?

by David Zatz on

Hyundai i10According to “Mr. Source,”  Hyundai and Chrysler’s joint marketing and distribution contract expired this month, and the two companies agreed to terminate their joint operations.  Chrysler de México will recieve a final shipment from Hyundai next month, and after that they will only service the vehicles sold under Chrysler umbrella.

Hyundai is reportedly planning a Mexican plant soon, and is already looking for possible dealers. They are planning their own distribution network for parts as well, rather than using Mopar for this.

Hyundai was responsible, according to past reports, for around one third of Chrysler’s sales in Mexico, through their H-series trucks and “Dodge i10” and “Dodge Attitude” cars.  Their cars continued to carry the Hyundai logo despite the “by Dodge” badging. The company still appears to be distributing Mitsubishis under that brand, and Fiat and Alfa Romeo under their own brands.

Dodge sales are likely to fall from both the loss of rebadged Hyundais and from the police departments’ switch to Ford cars. According to “Mr. Source,” the latter was part of a Chrysler policy change, as sales of Dodge cars and Ram trucks to the police forces led directly to severe drops in civilian sales. “Many of us are happy about [stopping the government sales], because since Chrysler was used as police cars or bodyguards’ vehicles, [civilian] sales of those cars were way down, nobody [in Mexico] wants the same car the police drive.”

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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