GM, Cerberus talks on Chrysler sale intense-sources

NEW YORK/DETROIT, Oct 24 (Reuters) - General Motors Corp (GM.N) has intensified talks to buy Chrysler LLC's auto operations from Cerberus Capital Management in a deal that would also involve a transfer of ownership of GMAC, people familiar with the talks said on Friday.

GM is concerned about the risk for costly supplier failures in the event of a merger with Chrysler and intends to seek U.S. government aid to support any deal, according to the sources who were not authorized to discuss the private talks.

Cerberus, the private equity firm that controls Chrysler, also remains in talks with other parties, including Nissan Motor Co(7201.T), about a deal for the struggling automaker.

(Reporting by Jui Chakravorty Das and Kevin Krolicki; Editing by Derek Caney)

((jui.chakravorty@thomsonreuters.com +1 646 223 6033; Reuters Messaging: jui.chakravorty.reuters.com@reuters.net)) Keywords: CHRYSLER/GM

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