Chrysler is interested in returning to merger talks with GM, according to a report in the Financial Times.
Talks between the two continue ‘at a very low level’ but would be stepped up immediately if the financial bailout is approved, the paper said, citing an unnamed source.
The two have been involved in merger discussions, but GM announced a few weeks ago that it had suspended those discussions in order to deal with immediate liquidity issues.
Chrysler’s private equity owner Cerberus is thought to be keen on getting loss-making Chrysler off its books.
However, a merger solution with GM – effectively GM absorbing Chrysler – would likely mean massive job losses at Chrysler.
Chrysler chairman and chief executive Robert Nardelli told lawmakers in Congress this week that Chrysler could run out of cash without immediate help.
The Big 3 are currently working on a plan to present to lawmakers in early December as precondition to funds.