GM, Chrysler in alliance talks

General Motors Corp. is in discussions with Chrysler Group on an alliance to share the costs of designing and developing vehicles, people with knowledge of the talks said Thursday.

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.

Chrysler Group parent DaimlerChrysler of Germany said Wednesday that it was considering all options, leaving open the possibility of unwinding the combination that formed the company in 1998.

“GM has a lot Chrysler could gain from because they have the more modern technology,” John Wolkonowicz, an analyst at Global Insight in Lexington, Mass., said in an interview. “I see GM as the stronger partner in any discussions.”

JPMorgan Securities analyst Himanshu Patel, in a note to investors, said that “a potential alliance between the two carmakers could be sensible if it is focused in selected product or technology areas.”

Renee Rashid-Merem, a spokeswoman for Detroit-based GM, and Mike Aberlich, a spokesman for Chrysler Group of Auburn Hills, Mich., declined to comment.

DaimlerChrysler shares rose 47 cents to $70.25, their highest closing price in seven years, as analysts raised their estimates and price targets. GM shares fell 6 cents to $36.44.