If such a merger is to happen, it's not likely that today's Chrysler would survive intact. The Wall Street Journal reports that Cerberus is looking at possibly breaking up the company into smaller groups that would be sold to different parties.
For instance, Cerberus may look to spin off Chrysler's engineering wing as a standalone company, sell the Mopar parts operations to another purchaser, and possibly consolidate Chrysler Financial into GMAC - which it also owns a majority stake in.
Likewise, Chrysler's current vehicle portfolio could also be divested in multiple ways. Automotive News suggests GM may be most interested in Chrysler's minivan lineup (a segment missing from GM's offerings), as well as a truck production facility in Mexico.
Although GM could purchase more than those assets, any leftover bits or divisions may be sold to other companies. One possibility is Renault, whose executives disclosed their interest in Chrysler during the 2008 Paris motor show.
While the folks at Cerberus are busy ironing out the details, so too are GM executives. The Wall Street Journal claims GM has teams analyzing the deal, and have identified nearly $10 billion in cost savings that reportedly could be attained through a merger.
Source: Automotive News