• OCTOBER 11, 2008

GM Had Talks With Chrysler

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General Motors Corp. has recently been in discussions about acquiring Chrysler LLC, according to people familiar with the matter, in a dramatic sign of the pressures mounting on the U.S. auto industry to restructure amid a deep slump in sales.

The upheaval in financial markets has rendered inactive the talks between Chrysler owner Cerberus Capital Management LLC and GM, which wants to shed its stake in GMAC, these people said. However, if markets stabilize, the talks could be renewed because both parties want to move those assets quickly, these people added.

Central to the plan is private-equity firm Cerberus, which ...

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