GM & Chrysler to Merge?

That's the latest word from news agencies, but there's been no official confirmation from representatives at General Motors or Cerberus Capital Management (which owns just over 80-percent of Chrysler) except today's statement from Cerberus which says, in part, the Company is looking at a number of potential global partnerships as it explores growth opportunities around the world.

It's unclear whether the two automakers are talking about a true merger or a GM buyout of Chrysler. One report mentioned a possible trade, with General Motors acquiring the build-duties of Chrysler vehicles and Cerberus taking on GM's remaining shares of GMAC, it's lending company (Cerberus already owns just over half of GMAC). Some sort of trade sounds more likely than a buyout, since GM is reportedly cash shy.

The talks with GM are no doubt connected to Cerberus's reported negotiations to buy the remaining 20-percent of Chrysler from Daimler.

Read the Reuters news article