Merger talks between General Motors and privately held Chrysler are moving at a faster pace as potential lenders have thrown their support behind a deal between the two U.S.-based automakers, CNBC has learned.
Chrysler CEO Robert Nardellli said he couldn't comment on market rumors or speculation, but noted that Chrysler has been open about looking for partners and creating alliances. He also conceded that the auto industry is ripe for combinations.
"If you look at the U.S. industry ... it certainly creates an environment for consolidation where you can get synergies of productivity that will allow you to be more competitive not just here in the U.S. but on a global basis."
Sources have told CNBC that GM and Chrysler plan to either reach a deal within the next two weeks or abandon the talks. The key to any deal: Getting GM to embrace whatever conditions Cerberus Capital Management, which owns Chrysler, is pitching.