Chrysler, GM Discuss Joint Development of Big SUV

DETROIT — The Chrysler Group is talking with General Motors about jointly developing a large SUV that would share underpinnings with the full-size Chevrolet Suburban and Tahoe, according to U.S. press reports.

Inside Line has learned that Chrysler had planned to develop a big utility vehicle off its own full-size Ram pickup platform for model-year 2010. But supplier sources say the SUV program, known internally by code name DS74, may have been shelved because of the ongoing budget crunch at Chrysler.

Stories in The New York Times and The Wall Street Journal said Chrysler hoped to save as much as hundreds of millions of dollars by sharing development costs with a company like GM. Chrysler has similar arrangements with Volkswagen, for which it is developing a companion to its redesigned Town & Country minivan, and Chery, with which it is developing a small B-segment compact car for North America.

The Wall Street Journal said Chrysler also is talking with GM Daewoo in Korea about jointly developing small cars. Daewoo supplies compact cars and SUVs to a variety of companies and brands, including Chevrolet, Opel and Suzuki.

On Thursday, DaimlerChrysler said it was considering "all options" regarding the financially struggling Chrysler Group, including the possible sale or spin-off of the U.S. automaker.

© Source: article on insideline
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