Ongoing talks between DaimlerChrysler and General Motors were confirmed today by DCX CEO Dieter Zetsche during an interview with Automotive News at the Geneva Motor Show. He said the talks had “shown potential but they have not come to a conclusion but have certain promise."

Unlike GM, Chrysler relies heavily on sales of its SUVs and pickups, and was previously reported that the two companies were negotiating over a possible deal to co-develop a new range of SUVs in an effort to save costs. Zetsche wasn’t willing to comment on the future of Chrysler or give details about the talks, but said that it was examining all its options.

One strategy has seen Chrysler partnering with firms in China, namely Chery Automobile. The 25 year long deal will allow Chrysler to use any model from Chery’s small car lineup to be sold under the Dodge label. The deal also means that Chery cannot partner with any other automakers from North America or Europe. "This is a very exclusive agreement which gives us access to a very low-cost product base with basically no investment on our side and according to the calculations we have made, with very nice profits in segments where hardly anyone else makes profits," he said.