According to undisclosed but reliable sources, General Motors Corp., Chrysler LLC and Cerberus Capital Management LP are on the verge of considering a merger, or an acquisition of Chrysler by GM. Cerberus Capital Management LP which has an 80.1 per cent stake in Chrysler, and is already engaged in a joint venture with GM, has evidently been holding talks about a full merger or acquisition with GM.

Detroit’s automakers have often explored tie-ups, and in this case, a consolidation of the auto-majors would augur well for the American automotive industry, as well as establish GM as global sales leader, a position that has come under threat from Toyota in recent times.

According to sources cited by the Wall Street Journal, Cerberus, who owns 51 percent of GMAC Financial Services, is pitching for GM’s remaining 49 percent stake in GMAC, in a trade-off for Chrysler’s automotive operations.

While negotiations between GM and Chrysler have been held more than a month ago, GM spokesman Tony Cervone maintained that GM officials, often discussed issues facing various automakers. Chrysler said that their company was exploring avenues for growth around the world, through beneficial global affiliations.