US car giants General motors and smaller rival Chrysler are rumoured to be in provisional merger talks.
The number one and number three in the American automobile market are both struggling to cope with the plunge in US car sales, which are at a 15-year low.
The two have been particularly hard hit by sales in the falling ‘truck’ and ‘Sports Utility’ market.
This week, shares in GM fell to a sixty year low after posting huge second quarter losses of around 11 billion euros.
And, Detroit based rival Ford is also believed to be considering selling off most of its 33 percent stake in Japan car maker Mazda.
All three US car manufacturers are facing tough questions over whether they can ride out the current financial credit storm.
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