U.S. automaker giant General Motors Corp. is in discussions with Daimler Chrysler AG's Chrysler unit on an alliance to share the costs of designing and developing cars, Bloomberg News reported on Wednesday.
The discussions, which began about a month ago, may allow the two automakers to share chassis designs and reduce development costs, the report quoted people with knowledge of the talks as saying.
Future cooperation may help both GM, the world's largest automaker, and Chrysler, the No. 3 U.S. automaker, reduce vehicle-development expenses as they try to end losses and stave off U.S. market declines to Toyota Motor Corp. and other Asian competitors.
Renee Rashid-Merem, a spokeswoman for the Detroit-based GM, and Mike Aberlich, a Chrysler spokesman, declined to comment.