General Motors Corp. and Chrysler LLC owner Cerberus Capital Management have discussed the possible sale of Chrysler to GM, people familiar with the matter told the Free Press Friday night.
The idea that two of Detroit’s three major automakers could unite has been floated several times in recent years — often around major auto shows — without coming to fruition. But if such a merger were to happen, it would not only reshape the global auto industry but also stand as a landmark moment in Detroit’s history.
Talks between GM and private-equity firm Cerberus began more than a month ago, the New York Times reported, noting the negotiations are not certain to produce a deal. The Times said two people close to the process said the chances of a merger were “50-50″ as of Friday and would likely take weeks to work out.
The Wall Street Journal, citing people familiar with the matter, said Cerberus proposed a swap: GM would take Chrysler’s automotive operations and Cerberus would take the 49% of GMAC that GM still owns.
The Journal said talks were halted by financial market upheavals, without detailing a date, but said they could resume quickly “because both parties want to move those assets quickly.”
