Ahead of the Bell: DaimlerChrysler

Associated Press 03.07.07, 7:50 AM ETDaimlerChrysler AG and General Motors Corp. are considering sharing the cost of making sport-utility vehicles, the Wall Street Journal said Tuesday, but neither party is talking about a GM purchase of Chrysler.

Based in Stuttgart, Germany, DaimlerChrysler (nyse: DCX - news - people ) said last month it will explore all options for its ailing Chrysler division - including a sale.

Daimler paid $36 billion for Chrylser nearly 10 years ago, and some analysts say Daimler may have to give Chrysler away for free. That's because whoever buys Chrysler will have to shoulder the division's health care burden.

Some analysts see Detroit-based GM as the most logical buyer because it too suffers from high costs to insure employees.

By acquiring a company with employees in the same union, the United Auto Workers, GM can negotiate a more favorable package for medical costs for employees.