Detroit (WWJ/AP)  -- General Motors and Chrysler have held preliminary talks about a merger or an acquisition of Chrysler by GM, according to published reports Saturday.

The Wall Street Journal, citing people it described as familiar with the discussions, said Cerberus Capital Management, the private equity firm that owns 80.1 percent of Chrysler and 51 percent of GMAC Financial Services, proposed trading Chrysler's automotive operations to GM. The Journal said Cerberus would receive GM's remaining 49 percent stake in GMAC.

The New York Times, also citing people familiar with the talks, said the automakers were discussing a merger. The Times did not mention GMAC, a traditional auto lender hit hard by the housing market downturn. 

Speaking live on WWJ Saturday morning, Bill Vlasic from the New York Times said the talks between GM and Cerberus began more than a month ago, and the negotiations are not certain to produce a deal.

Vlasic said his sources said the chances of a merger were “50-50.”   Listen to the interview. 

A merger would be a historic event, with two of the most iconic names in American industry coming together to survive in an increasingly difficult environment. Both have roots dating back decades in Detroit and, with Ford, long dominated the auto industry — until Japanese and other foreign car makers began making inroads into the American market.

The talks have stalled because of the recent turmoil in the financial markets, according to the Journal. Its sources said negotiations could resume if markets stabilize because both GM and Cerberus want to quickly divest the assets under discussion.

"Without referencing this specific rumor, as we've often said, GM officials routinely discuss issues of mutual interest with other automakers,'' GM spokesman Tony Cervone said.

Chrysler spokeswoman Lori McTavish issued a statement saying:

"Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings.   As we have said, the Company is looking at a number of potential global partnerships as it explores growth opportunities around the world.   Beyond those partnerships already announced however, Chrysler has not formed any new agreements and has no further announcements to make at this time."

This would not be the first time Detroit's automakers have explored mergers.

GM reportedly talked with DaimlerChrysler AG in 2007 about acquiring Chrysler before Cerberus made a deal to acquire most of the automaker.

In 2005, GM and Ford Motor Co. reportedly held talks regarding a potential business combination.

Cerberus acquired its GMAC stake in 2006 for $14 billion and bought 80.1 percent of Chrysler from Daimler AG in August 2007 in a $7.4 billion deal. Cerberus and Daimler confirmed last month they are in talks for Cerberus to acquire Daimler's remaining Chrysler stake.

The auto industry has been hit hard in recent weeks by the effects of the credit crisis, prompting GM and Ford to issue statements Friday to dispel the notion that they might be headed for bankruptcy.

GM and Ford shares were battered with the rest of the stock market this week, falling to lows not seen in decades. GM shares lost about half of their already-depressed value during the week, closing at $4.89 on Friday. Ford shares fell similarly, ending the week at $1.99.