DETROIT (Reuters) — DaimlerChrysler said yesterday it would cut 13,000 jobs at its Chrysler operation in North America and indicated it could sell or spin off the money-losing unit, which would unwind a troubled nine-year-old merger between Chrysler and Mercedes.The world’s No. 5 automaker said it would shut two Chrysler plants as part of a strategy to make the business profitable by 2008 as it focuses more on building fuel-efficient cars, a sector of the market dominated by its Japanese rivals.

The automaker will also cut North American production capacity by 400,000 units through 2009.

The announcement — the biggest shake-up of the group since Germany’s Daimler-Benz AG and Chrysler Corp joined forces in 1998 — sent DaimlerChrysler’s share price surging to its highest point in more than four years.

“It’s hard to say if it’s enough ... but the stock is reacting nicely, which is further verification that this is a favourable restructuring move and a much-needed one at Chrysler,” said Tim Ghriskey, chief investment officer at Solaris Asset Management. The plan will trigger a 2007 restructuring charge of up to $1.3 billion but aims to return Chrysler to profit in 2008 and generate a 2.5-percent return on sales by 2009.

Chrysler has been hit by inventory problems and a growing consumer reluctance to buy trucks and sports utility vehicles, while Mercedes-Benz has been wary of getting too close to its US cousin for fear of diluting its luxury brand.

Chief executive Dieter Zetsche, who took over the company’s top job in 2006, said Chrysler would also explore strategic options with new industrial partners — a reversal of his position of just three months earlier.

“We do not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler,” he told a news conference. “This means all options are on the table.”

Zetsche would not elaborate or say if talks with potential partners had begun or whether the automaker had retained an investment adviser.

The Detroit News quoted unnamed company sources as saying DaimlerChrysler had hired J.P. Morgan & Co. to consider options for Chrysler. A spokesman for the bank could not be immediately reached for comment.

News of Chrysler’s strategic review sent the group’s stock up more than 8 percent on the New York Stock Exchange to its highest level since June 2002.

It also plunges Chrysler into the maelstrom that has swept up Detroit rivals General Motors Corp and Ford Motor Co. as they cut thousands of jobs and close plants to reflect falling U.S. market share amid an onslaught by Asian rivals.

The announcement was a departure from the group’s clear statement as recently as October that Chrysler was not for sale.

In a note to clients, analyst Stephen Cheetham at Sanford Bernstein cast doubt on prospects for a quick Chrysler sale, citing the complication of looming talks with the automaker’s major union.