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The Korean industrial giant Hyundai is leading a pack of international suitors for Chrysler, the troubled US arm of automotive manufacturer Daimler Chrysler.

A takeover of Chrysler by Hyundai, which makes cars under its own brand as well as controlling the Kia marque, would be a watershed for American business.

Alongside Ford and General Motors (GM), Chrysler is one of Detroit’s big-three manufacturers. Together they have fought a fierce and largely losing battle for three decades against low-cost competition from Asian rivals including, latterly, Hyundai.

GM, still the world’s biggest car company, is also interested in buying Chrysler, a move that would speed a much-needed reduction of output by North American carmakers. GM was reported last week to have held exploratory talks with Daimler Chrysler executives.



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