by Calculated Risk on 10/10/2008 10:38:00 PM

The WSJ reports that GM has recently talked with Cerberus about acquiring Chrysler's automotive operations in exchange for GM's remaining 49% stake in GMAC.

Cerberus would keep Chrysler's financing arm - and probably would combine it with GMAC.

According to the WSJ, GM would expect about $10 billion in savings by combining the automotive operations.

This actually might make sense ...

UPDATE: Same story from the NY Times: G.M. and Chrysler Explore Merger

The talks between G.M. and Cerberus Capital Management ... began more than a month ago, and the negotiations are not certain to produce a deal. Two people close to the process said the chances of a merger were “50-50” as of Friday and would most likely still take weeks to work out.