Leading US automakers General Motors and Chrysler are engaged in preliminary talks that may result in their merger, The New York Times and The Wall Street Journal reported on their websites.
The negotiations reflect growing concern in Detroit about competition from Japanese automakers and a realization that the US auto industry needs to restructure.
The talks between GM and Cerberus Capital Management, the private equity firm that owns Chrysler, began more than a month ago, The New York Times said.
They are not certain to produce a deal, which in any case is still weeks away, but two people close to the process said the chances of a merger were 50-50, The Times reported.
