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Two days after the shock announcement that DaimlerChrysler would "consider all options" for its ailing Chrysler division, German newspapers reported that General Motors was emerging as a candidate to acquire some or all of the group's North American assets.

Though the initial reports were greeted with some incredulity, both GM and Chrysler confirmed that there had been discussions about collaboration and asset-sharing, though no details have been forthcoming.

Both sides stressed that all OEMs talk to each other these days about deals on powertrain and manufacturing capacity.

Commentators believe that a more likely long-term suitor for Chrysler could be the Renault-Nissan alliance, whose own projected deal with GM fell through last autumn. Renault is known to want a North American presence to bolster its claims to be a world player.

A stumbling block to any GM-Chrysler deal could be the unionisation of the North American Chrysler plants. GM has spent much effort winning the unions around tio support its drastic plans for its own North American operations, and might be chary about taking on a new battle in this area, with capacity cuts certain within Chrysler.

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