General Motors has held discussions about acquiring Chrysler, The New York Times and Wall Street Journal reported late Friday.

The talks between GM and Cerberus Capital Management, which owns Chrysler, began more than a month ago, the Times reported on its Web site.

The Journal reported that the talks were “rendered inactive” because of the upheaval in financial markets but that people familiar with the developments said the talks could be revived quickly if markets stabilize.

Two people close to the talks told the Times the chances of a merger were “50-50.”

Sources:
From MSNBC
FULL Article from NY Times

“Holy Auto Merger Batman!” Can you imagine how things will turn out if this happens…will GM quality drop to Chrysler standards? Or will Chrysler quality raise to GM standards? Or perhaps they are both too low to matter? Either way they shakes out, I am suspecting that GM may be on the verge of pulling out of leasing completely.