A deal of any sort with ailing automotive manufacturer Chrysler is beginning to look like a hot potato. We recently reported that talks with Nissan-Renault had ceased, as Cerberus Capital Management (Chrysler’s current owners) felt GM had more to offer.

However, a merger with General Motors may now be equally doubtful with GM - having just posted a third quarter USD$2.5 billion loss (Q3 financial report) - now expected to have its work cut out simply keeping the ship afloat. 

Enter Hyundai. In news just to hand, Reuters has reported that the giant Korean automaker has joined the line fishing for some of Chrysler’s assets, including the Jeep brand. While Cerberus had originally intended to see Chrysler sold off in its entirety, with nobody buying it may now have to reconsider that strategy.

Talks with Nissan-Renault may also resume as Cerberus looks to keep options open on a deal that’s steadily becoming harder to close. Comments from Nissan-Renault CEO Carlos Ghosn that a deal between the two does not make sense during these troubled economic times makes us wonder just how viable is the Nissan-Renault option.

It’s not going to be an easy sell for Cerberus Capital Management as auto manufacturers around the world continue to struggle in the face of increasing economic pressures, declining sales and a global economy in tatters. American manufacturers in particular are doing it tough. With GM looking to protect its own interests first, a foreign buyer may be the only option for Chrysler.