by Calculated Risk on 11/01/2008 07:57:00 PM

From Detroit News: Chrysler-Nissan talks halt

Talks between the Renault-Nissan alliance and Cerberus Capital Management LP have stopped as both sides acknowledged Cerberus's preference to conclude a deal for Chrysler LLC with General Motors Corp. ... viewing it as financially more advantageous and also better for the U.S. auto industry.

The WSJ hints that a deal may be imminient:

Speculation continues to swirl that Cerberus is looking to make a move on Chrysler as early as Tuesday but has run into problems in lobbying for federal aid.

And the impact of a merger could be significant:

News of a GM-Chrysler merger has chilled automotive workers throughout the country. Such a partnership would result in the closing of seven of Chrysler's 14 U.S. factories and ... As many as 200,000 jobs could be cut ...