GM said to have sought merger with Ford before Chrysler

Before General Motors began exploring a possible merger with Chrysler - talks that first came to light Friday - GM proposed a similar deal with its other cross-town rival, Ford Motor, two people with knowledge of the talks said. GM executives approached Ford about a possible merger in July, but Ford rejected the idea and ended the discussions last month, these people said Saturday. After Ford decided to remain independent in an increasingly difficult auto market, GM turned its attention to Chrysler. For the past month, it has been in preliminary merger talks with Chrysler's owner, the private equity firm Cerberus Capital Management. People with knowledge of the talks described the chances of a deal as "50-50." The behind-the-scenes maneuvering illustrates the mounting pressure on the Big Three Detroit automakers to solve... [read full story]