DETROIT (AP) -- Published reports say General Motors and Chrysler have held preliminary talks about a merger -- or an acquisition of Chrysler by GM.
The Wall Street Journal, citing anonymous sources, says Cerberus Capital Management -- which owns 80 percent of Chrysler -- proposed trading Chrysler's automotive operations to GM.
The Journal says Cerberus, which also owns 51-percent of GMAC Financial Services, would get GM's remaining 49-percent stake in GMAC in return.
The New York Times, also citing unnamed sources, says the automakers have discussed a merger. The Times report doesn't mention GMAC, a longtime auto lender hit hard by the housing market downturn.