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 Chrysler'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.

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