DETROIT - General Motors Corp. and Chrysler LLC have held preliminary talks about a merger or an acquisition of Chrysler by GM, according to published reports late Friday.

The Wall Street Journal, citing people it described as familiar with the discussions, said Cerberus Capital Management, the private equity firm that owns 80.1 percent of Chrysler and 51 percent of GMAC Financial Services, proposed trading Chrysler's automotive operations to GM. The Journal said Cerberus would receive GM's remaining 49 percent stake in GMAC.

The New York Times, also citing people familiar with the talks, said the automakers were discussing a merger. The Times did not mention GMAC, a traditional auto lender hit hard by the housing market downturn.
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The talks have stalled because of the recent turmoil in the financial markets, according to the Journal. Its sources said negotiations could resume if markets stabilize because both GM and Cerberus want to quickly divest the assets under discussion.

The negotiations between 100-year-old GM and 83-year-old Chrysler began more than a month ago, according to the Times. Its sources said the chances of a merger were "50-50" as of Friday and likely would take weeks to complete.

Both newspapers posted their stories on their Web sites late Friday.

"Without referencing this specific rumor, as we've often said, GM officials routinely discuss issues of mutual interest with other automakers," GM spokesman Tony Cervone said.

Chrysler spokeswoman Shawn Morgan declined comment.


i dont think it is going to happen. but when it seems everything nowdays is going to h*ll in a hand basket who knows.

 

Just a heads up , you should probably just link to the info before an admin removes the post completely.

 

ooops hehehe. thanks forgot that

 

Link. http://news.yahoo.com/s/ap/20081011/...r_merger_talks

 

well, gm's stock is at least above $3 a share now......thought about buying into it several times.....but no. It was in the pooper on friday, down to around $2 and some change. Guess if I bought in then I could have doubled my money and sold the stock monday!

I think everybody is sitting around watching to see what will happen. Me, I'm buying penny stocks!!

Wonder what would happen if they did merge?? Duramax all around?? EEeeewwwww.........

Why don't they merge with Ford, then they can go down the toilet together!

 

cummins in a chevy with an allison? g'night ford.


no but in all seriousness, theres probbaly only a .01% chance it will happen. I just dont see it...media is blowing things out of proportion

 

just a ctd in a chevy would be great, dont care about an auto tran

 

Geez, why on earth can't Chrysler just hold it's own and stay Chrysler?!?!

 

Some sources have said there may be a 50/50 chance of this happening. I personally don't think the odds are that good. I personally hope it doesn't happen.