GM and Chrysler have held preliminary talks about a merger or an acquisition of Chrysler by GM, reports the AP.
According to the Wall Street Journal, 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. Cerberus would receive GM’s remaining 49 percent stake in GMAC.
The New York Times also reported that GM and Chrysler were discussing a merger.
Apparently, the talks about merging have stalled because of the recent turmoil in the financial markets, according to the Wall Street Journal.
The negotiations between both automakers began more than a month ago, according to the New York Times. Its sources said the chances of a merger were "50-50" as of Friday and would probably take weeks to complete.
"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.
"The company is looking at a number of potential global partnerships as it explores growth opportunities around the world," Chrysler spokeswoman Lori McTavish said. "Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time."