Shares of DaimlerChrysler AG (NYSE: DCX) rose on Friday, after a reports indicated that General Motors Corp. (NYSE: GM) could buy the German-American car maker's struggling Chrysler unit.
Automotive News said Friday that the high-level talks between the companies have not only focused on cooperation on a large SUV, a potential deal could go beyond a limited development alliance. Shares of DaimlerChrysler rose 4.29 percent, or 3,01 dollars to $73.26 in late afternoon trading on the New York Stock Exchange.
Share of GM dropped 0.27 percent, or 10 cents, to $36.34.
On Wednesday, DaimlerChrysler Chairman Dieter Zetsche fuelled speculation when he left open the possibility of a sale, saying all options are on the table.
A Reuters source said it was questionable whether GM would take Chryslerâ€™s finance arm, since it had already sold off its GMAC unit last year.
The New York Times, meanwhile, indicated that the SUV alliance could give Chrysler a version of the Chevrolet Tahoe.
Last year, GM had entered into talks with Japanese carmaker Nissan and French Renault SA about entering into a triple alliance; however the talks ended without an agreement.