According to an article from Yahoo News, GM and Chrystler are in talks over a possible merger of the two companies. Cerberus Capital Management LP, which owns 80.1 percent of Chrystler and 51 percent of GMAC Financial Services has made in roads in recent months to acquire all of Crystlers assets from the German based Daimler Benz AG which it could then turn over to GM for the remaining 49 percent of its stake in GMAC. Essencially merging the two automakers in what could potencially be a cost saving measure on the parts of the two ailing car manufacturers, but more importantly, it would solidify GM’s claim to the top spot in global sales, a position currently held by Toyota.

While GMAC has generally been a cash cow for GM in good times, at a time when GM is just trying to keep their business afloat, spinning off the company removes a lot of the risks involved in dealing with home and auto loans. It also allows all three companies to consolidate their businesses, which should be good for their respective bottom lines.

With Chrystler being 81% privately held, it’s somewhat difficult to gague, especially without a prospectus, what kind of baggage it may come with. Still, while the merger is far from a sure thing at this point, it is an interesting turn of events, and is something worth keeping an eye on.

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