After Daimler, is it turn of GM to burn hands with Chrysler?

Speculations are high that General Motors and Chrysler have been in talks about a possible merger for the past month.
The Times says a deal between the two is "50-50" and could take weeks to finalize. GM has repeatedly denied it's considering a bankruptcy filing as its stock shares have been slammed, falling from $43 a share as a recent high to $4 a share this week. The possibility of a merger is on hold because of the stock market's gyrations, the papers add, but a deal could be rejoined quickly if the markets stabilize.
Wall Street Journal says the deal would likely involve a swap of Chrysler assets held by Cerberus Capital Management, for the remainder of GM's finance arm GMAC that Cerberus does not already hold--49 percent of GMAC's shares.
A G.M. spokesman declined to comment on any specific talks with Chrysler. “Without referencing this specific rumor, as we’ve often said G.M. officials routinely discuss issues of mutual interest with other automakers,” said the spokesman, Tony Cervone.
Cerberus people (the private equity firm that owns Chrysler) haven't been returning phone calls and Chrysler 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.
Merger of GM and Chrysler would put Cerberus in charge of an "unspecified equity stake" in the corporation, making the two-headed General-Chrysler (or Chrysler Motors?) the world's largest automaker, controlling over 35 percent of the U.S. vehicle market, causing rifts among brand faithful and offering more potential (vehicle) cannibalization.
A merger between GM and Chrysler would lead to radical, and permanent, changes in the U.S. automotive landscape. The companies have more than 100 factories and 11 brands, not to mention thousands of dealers that would have to be rationalized to make money out of the merger. Other sources estimate GM could net $10 billion in savings out of a potential merger--but that would only happen after drastic cuts to the number of models the companies make, the number of plants they operate and the number of people they employ.
Although deal would ensure GM remains the world's largest automaker, outgunning Toyota and controlling 35 percent of the U.S. market for new light vehicles but it does not seem to be a wise decision of GM to go for this deal.
To remind Mercedes (Daimler) bought Chrysler around $36 in 1999, and Cerberus bought it from them for a $6-7 billion, and that too in inflated 2007 $! Also if GM buys Chrysler, they will spend next 3 years closing factories, deleting name brands, laying off people, and not saving money at all. GM has to focus on continuing the long road uphill which has had some successes. According to me this merger would be a big waste of time and money for them.
Meanwhile Chrysler has also been exploring deeper alliances with Renault/Nissan. It has engaged that alliance to build a new small car for Chrysler--basically a re-badged Nissan Versa--while Chrysler provides Nissan with a next-generation Titan pickup spun from its Ram truck. The synergies from a Chrysler-Renault/Nissan deal, on paper, are far more uncomplicated than with GM. Chrysler's expertise in trucks, minivans and SUV’s would have little overlap with Nissan's luxury, performance and small cars.