Chrysler and GM seek help with merger

DETROIT, Oct. 20 (UPI) -- U.S. auto giants Chrysler and General Motors are looking for government help in financing a merger, unnamed sources close to the discussions said.

Details of the talks have remained under wraps, but sources said the companies are pointing out the size of the new company, which would command 36 percent of the U.S. auto market, and the repercussions if one or both of the companies should fail as justification for federal intervention, USA Today reported Monday.

The newspaper said talks are pivoting on GMAC, General Motors' financial subsidiary. Cerberus Capital Management, which owns Chrysler, owns more than 50 percent of GMAC and is negotiating for 100 percent. But, General Motors is reluctant to give up its share, the newspaper said.