Only a small minority of (unfortunately VOCAL) chabadniks believe that the Rebbe never died. Many believe that he would have been a potential candidate to be the messiah but since obviously moshiach isn't here yet it's not him... I find this generalization ("Chabad's messianic branch, which believes the last Lubavitcher rebbe, the late Menachem Mendel Schneerson, never actually died and is in fact the messiah.") rather offensive.
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Police fire tear gas, detain 200, in Istanbul May Day scuffles (Reuters)
from the article: The day Chabad came to the Last Supper