GM, Chrysler in Talks on Design Alliance, Insiders Report

Chrysler already has ventures to build vehicles with other automakers including one with China's Chery Automobile Co. to produce cars smaller than its current models, after deciding it couldn't make them profitably in the U.S.

Published: 16-Feb-2007

General Motors Corp., the world's largest automaker, is in discussions with DaimlerChrysler AG's Chrysler unit on an alliance to share the costs of designing and developing cars, people with knowledge of the talks said.

The discussions, which began about a month ago, may allow the two automakers to share chassis designs and reduce development costs, said the people, who asked not to be identified. The talks include possible cooperation on a large sport-utility vehicle, one of the people said.

DaimlerChrysler, of Stuttgart, Germany, said yesterday it is considering "all options" for the money-losing U.S. subsidiary.

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