The two companies have had conversations about cooperation that could go all the way up to an outright merger. The Wall Street Journal reported that Cerberus Capital Management LP wants to swap Chrysler for the 49 percent of GMAC Financial Services that is still held by GM. Cerberus owns the other 51 percent of GMAC.
When news of the talks broke, many analysts panned the combination.
"The benefits of such a merger are, on the surface, slim for both GM and Chrysler," Global Insight analyst Aaron Bragman said in a report. "Both companies have significant and similar problems (too many dealers, damaged brands, falling sales, overcapacity, inability to raise capital) that combining forces will simply not cure."
Those negatives might outweigh any potential pluses. For GM, those benefits could be access to Chrysler's cash, the addition of minivans and Jeep to its portfolio and further cost cuts in back-office functions. Cerberus could benefit by combining GMAC and Chrysler Financial.
On a five-star scale, with five being very likely, how likely is this tie-up? Let's call it three stars — although there may be higher odds for smaller-scale partnerships.