GM and Chrysler 'in merger talks'

Chrysler is the No3 maker in the United States, and GM the No1 US car giants General Motors and Chrysler are in talks about a possible merger, US media say. Reports say the talks have been going on for a month but details of the deal vary from a merger to an acquisition by GM of Chrysler. GM is the leading manufacturer and Chrysler third after Ford. All have been suffering with a plunge in US sales to 15-year lows. Neither of the parties have made any direct official comment. Ford move Sources told the Wall Street Journal that Cerberus Capital Management, which owns 80.1% of Chrysler had proposed trading its automotive operations to GM in return for GM's stake in the auto lender GMAC Financial Services. The New York Times's sources spoke... [read full story]