"I don't have anything specific I want to talk about at this point," he said. "There may be ways (to help a merger) ... but I better leave it at that."

Levin obviously has his own ideas about how to facilitate a GM/Chrysler deal. Whether he's thinking low-interest loans — more of them — or something more akin to the recent banking deal that saw the federal government gain minor stakes in the companies themselves remains to be seen. But at this point, we're not sure the federal government is in any better shape than GM or Chrysler. [Detroit News]

So what's Nardelli got to say about life, liberty and the pursuit of less losses for Cerberus? Here's the full transcript of his exclusive interview with CNBC's David Faber:

CNBC EXCLUSIVE: CNBC TRANSCRIPT: CNBC'S DAVID FABER SITS DOWN
WITH ROBERT NARDELLI, CHRYSLER CHAIRMAN & CEO, TODAY ON CNBC'S "WALL
STREET CRISIS: IS YOUR MONEY SAFE?"

WHEN: Today, Thursday, October 16th at 8:40PM ET

WHERE: CNBC's "Wall Street Crisis: Is Your Money Safe?"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview
with Robert Nardelli, Chrysler Chairman & CEO.

All references must be sourced to CNBC

———————————————————————————————-

FABER: THANK YOU MARK. YEAH WE ARE HERE ROBERT NARDELLI. MR. NARDELLI
THANKS FOR JOINING US.

NARDELLI: THANK YOU. IT IS GREAT TO BE HERE.

FABER: ON THIS LOVELY EVENING WITH THE CRICKETS WITH THE BACKGROUND. LET
ME START OFF WITH THE HEADLINES THAT WE'VE BEEN TALKING ABOUT, PEOPLE
HAVE BEEN SEEING, AND WE'VE BEEN TALKING ABOUT FOR MORE THAN A WEEK NOW.
ARE YOU IN TALKS WITH GENERAL MOTORS? IS IT POSSIBLE CHRYSLER WILL GET
PURCHASED BY GM?

NARDELLI: AS YOU KNOW, OBVIOUSLY, WE DON'T COMMENT ON THOSE RUMORS OR
SPECULATION, DAVID, BUT I THINK IF YOU LOOK AROUND THE GLOBE, TODAY THEY
ANNOUNCED IN CHINA A CONSOLIDATION. OBVIOUSLY, THERE'S GOING TO BE
SPECULATIONS.WE'VE BEEN VERY OPEN ABOUT LOOKING FOR PARTNERS AND
CREATING ALLIANCES, VERY IMPORTANT FOR US. WE ANNOUNCED THE ONE WITH
NISSAN THAT WOULD GET US INTO A "B" PLATFORM, A SMALLER-SIZED VEHICLE.
IS IT SOMETHING WE CAN'T DO? SURELY NOT. WE HAVE GREAT ENGINEERS, WE'VE
GOT GREAT TECHNOLOGY TO BE ABLE TO DO IT, BUT RIGHT NOW IT'S A RACE.
IT'S A RACE TO MAKE SURE WE CAN RESPOND TO AN UNPRECEDENTED CHANGE IN
THE INDUSTRY AND CONSUMER DEMAND BY DOWNSIZING. SO BY BEING ABLE TO FORM
THESE ALLIANCES OR CREATE THESE PARTNERSHIPS, WE'RE TRYING TO FILL OUR
PORTFOLIO TO SUPPORT OUR DEALERS TO BE MORE RESPONSIVE TO OUR CUSTOMERS.

FABER: THERE ARE SOME WHO SAY THAT THERE ARE A LOT OF BENEFITS FROM
CONSOLIDATION, FROM A GM AND CHRYSLER, THE SYNERGIES WOULD BE
CONSIDERABLY VERY LARGE. DO YOU AGREE?

NARDELLI: WELL, I THINK IF YOU LOOK AT THE U.S. INDUSTRY, WE STARTED THE
YEAR AT ABOUT 16.6 MILLION UNITS. WE FINISHED LAST MONTH AT 12.8. THE
PIN NUMBERS TODAY ARE AROUND 12 MILLION UNITS. I THINK IT JUST,
CERTAINLY, CREATES AN ENVIRONMENT FOR CONSOLIDATION, WHERE YOU CAN GET
SYNERGIES OF PRODUCTIVITY THAT WILL ALLOW YOU TO BE MORE COMPETITIVE,
NOT ONLY HERE IN THE U.S. MARKET, BUT ON A GLOBAL BASIS.

FABER: TO THE EXTENT — AND I REALIZE YOU'RE NOT GOING TO COMMENT ON THE
TALKS, PER SE, TO THE EXTENT THERE ARE ANY, BUT WHEN THOSE KINDS OF
TALKS OCCUR,THEY CAN ALSO BE DISTRACTING. FOR MANAGEMENT, AND
POTENTIALLY FOR EMPLOYEES. ASSUMING THERE ARE TALKS GOING ON, IS IT
SOMETHING THAT YOU WOULD APPROACH AND THEN WANT TO TRY TO GET AN ANSWER
TO IN A FAIRLY RAPID FASHION?

NARDELLI: LET ME JUST SAY, I COULDN'T BE PROUDER OF OUR ORGANIZATION.
THEY HAVE GONE THROUGH A TREMENDOUS LEVEL OF ANXIETY. REMEMBER, THEY
FORMED A MERGER OF EQUALS, IF YOU WILL, A WHILE BACK. AND THEN ALL
OPTIONS WERE PUT ON THE TABLE IN SOME TIME, FEBRUARY, MARCH OF LAST
YEAR, AND THEN WE CONSUMMATED THE DEAL, IF YOU WILL, WITH CERBERUS.
AGAIN, I COULDN'T BE HAPPIER WITH CERBERUS AS OUR OWNERS AND STEVE
FEINBERG HAS BEEN ABSOLUTELY WONDERFUL TO WORK WITH, THE ENTIRE
ORGANIZATION. SO OUR PEOPLE HAVE GONE THROUGH TREMENDOUS ANXIETY.
THEY'VE SEEN THE PEAKS, THEY'VE SEEN THE VALLEYS. NOT ONLY RECENTLY, BUT
THE HISTORY OF CHRYSLER, DAVID, AS YOU KNOW, HAS BEEN ONE OF A LITTLE
BIT OF A ROLLER COASTER RIDE, WHERE WE'VE ALWAYS MANAGED TO COME OUT
WITH SOME BOLD, INTIMIDATING, COMMANDING DESIGNS. NEW TECHNOLOGIES,
INNOVATIVE SOLUTIONS TO WHAT CUSTOMERS ARE LOOKING FOR. SO I THINK OUR
PEOPLE ARE VERY RESILIENT. AND WE JUST KEEP REASSURING THEM THAT OUR
RESPONSIBILITY IS TO RETURN CHRYSLER TO PROFITABILITY. WE FOCUS ON THAT
EVERY DAY. WE DO THAT BY MAKING SURE THAT WE'VE GOT GREAT PRODUCT
CADENCE. WE MAKE SURE THAT WE'RE INVESTING HEAVILY IN QUALITY. THAT OUR
QUALITY TODAY IS BETTER THAN YESTERDAY. NOT AS GOOD AS IT'S GOING TO BE
TOMORROW, SO THAT WE CAN REALLY CHANGE THE IMAGE, THE REPUTATION, THE
RELIABILITY, THE DURABILITY OF OUR VEHICLE, THAT THEN SUPPORTS OUR
DEALER NETWORK. A STRONG DEALER NETWORK, A LOYAL DEALER NETWORK, AND
THEN TRY TO RESPOND TO CONSUMER DEMAND.

FABER: LET'S TALK ABOUT SOME OF THE OTHER THINGS GOING ON RIGHT NOW. THE
PRICE OF OIL HAS DROPPED PRECIPITOUSLY. ONE WOULD IMAGINE THAT MIGHT BE
GOOD NEWS FOR YOUR INDUSTRY. ONE MIGHT IMAGINE THAT, BUT I CAN ALSO
IMAGINE IN THIS ENVIRONMENT, IT MIGHT NOT BE THE CASE.

NARDELLI: I THINK IN A NORMAL ENVIRONMENT, WE'D BE DOING A DANCE RIGHT
NOW AT UNDER $70, YOU KNOW, AROUND $3 PER GALLON. OBVIOUSLY, WHEN OIL
SPIKED, GASOLINE PRICES WENT UP TO $4. WE THOUGHT THAT WAS GOING TO BE
OUR BIGGEST CHALLENGE IN 2008.IF YOU THINK ABOUT AN ECONOMY THAT'S IN
TURMOIL, IF YOU THINK ABOUT AN INDUSTRY THAT'S SPIRALING DOWNWARD, $4 A
GALLON GAS HAS REALLY BEEN DWARFED BY THIS WHOLE ISSUE NOW OF CREDIT
AVAILABILITY FOR OUR CONSUMERS, CONSUMER CONFIDENCE, CONSUMERS' ABILITY
TO ACTUALLY GET INTO A VEHICLE. YOU'VE SEEN SOME FINANCING ARMs TODAY
ANNOUNCE, UNLESS YOU HAVE A FICA SCORE OF ABOUT 700, YOU WON'T QUALIFY.
A LOT OF NORMAL CUSTOMERS OUT THERE TODAY, DAVID, ARE 650, 670. AND SO
THOSE THAT HAVE ENOUGH INITIATIVE, ENOUGH CONFIDENCE TO BUY A VEHICLE
MAY FIND THEMSELVES NOT QUALIFYING FOR A VEHICLE.

FABER: SO YOU'RE SAYING THAT DESPITE THIS INCREDIBLE DROP IN OIL, WHICH
ONE WOULD IMAGINE WOULD BE GOOD NEWS FOR YOUR POTENTIAL BUYER, THE
CREDIT PROBLEM IS DWARFING THAT?

NARDELLI: I THINK, NUMBER ONE, IT'S PARAMOUNT IN THE CONSUMER MIND RIGHT
NOW. I THINK IT'S THE BIGGEST CHALLENGE THAT WE'RE FACING RELATIVE TO
OUR DEALER NETWORK, TO MAKE SURE THAT WE CAN CONTINUE TO FINANCE THEM ON
THE WHOLESALE BASIS, THAT THEY STILL HAVE GOOD ACCESS TO RETAIL
FINANCING, AND SO WE'RE WORKING VERY HARD RELATIVE TO INCENTIVES TO MAKE
SURE THAT OUR CONSUMERS CAN GET INTO OUR VEHICLES. WE TRIED THAT EARLIER
THIS YEAR WITH REFUELING AMERICA.SO WE HAVE A LASER FOCUS ON OUR DEALERS
AND OUR CONSUMERS, OUR CUSTOMERS TO TRY TO COME UP WITH SOLUTIONS,
CREATIVE SOLUTIONS, KIND OF OUT-OF-THE-BOX SOLUTIONS. BECAUSE AS A
PRIVATE EQUITY COMPANY, WE HAVE THE ABILITY TO DO THINGS IN SOMEWHAT OF
AN UNTRADITIONAL MANNER.

FABER: HOLD IT THERE. WE'RE GOING TO BE RIGHT THERE. I WANT TO TAKE A
BREAK AND WE'LL CONTINUE TO TALK WITH BOB NARDELLI, CHAIRMAN AND CEO OF
CHRYSLER

FABER: WELCOME BACK TO CNBC, I'M DAVID FABER HERE IN KIAWAH ISLAND,
SOUTH CAROLINA, WHERE THE BUSINESS COUNCIL IS TAKING PLACE. I'VE BEEN
SPEAKING TO BOB NARDELLI, THE CHAIRMAN AND CEO OF CHRYSLER. WE'VE BEEN
TALKING ABOUT THE IMPACT THE CREDIT CRISIS HAS BEEN HAVING ON YOUR
BUYERS, WHO ARE UNABLE TO GET CREDIT TO BUY AUTOMOBILES. YOU MENTIONED
16.6 MILLION AUTO SALES. WHERE ARE WE HEADED? SOME SEE US HEADED AS LOW
AS 13 MILLION. IS THAT REALLY A POSSIBILITY?

NARDELLI: I THINK THAT'S A VERY REAL POSSIBILITY. DAVID, WE STARTED THE
YEAR AT ABOUT 16.6. LAST NOVEMBER, TRYING TO PUT TOGETHER A VERY
AGGRESSIVE, CONSERVATIVE PLAN FOR CHRYSLER, WE KIND OF PEGGED IT AT
15.5. SO WE THOUGHT WE WERE IN PRETTY GOOD SHAPE THROUGH THE FIRST
QUARTER. THEN WE SAW THIS UNPRECEDENTED AND PRECIPITOUS SPIRALING
DOWNWARD. LAST MONTH WE ENDED WITH SEASONALLY ADJUSTED RATE OF ABOUT
12.8. AGAIN, THERE ARE FORECASTS OUT THERE THAT THE YEAR COULD END AT 13
MILLION. RIGHT NOW THE PIN NUMBERS HAVE US JUST SLIGHTLY ABOVE 12
MILLION. SO JUST IMAGINE THE VOLUME CONTRACTION, JUST IN THE U.S.
MARKET.

FABER: THAT'S SHOCKING. THAT'S OVER 4.5 MILLION CARS.

NARDELLI: IT IS. SO JUST TO PUT THAT INTO CONTEXT, THAT'S AS BIG AS ONE
OF THREE MANUFACTURERS IN DETROIT IS TODAY. SO WE'VE HAD TO,
UNFORTUNATELY, TAKE OUT ABOUT 1.1 MILLION EQUIVALENT UNITS OF CAPACITY.
WE'VE HAD TO AFFECT WELL OVER 25,000 FAMILIES AS A RESULT OF HAVING TO
RESIZE TO MAKE SURE THAT WE CAN BE COMPETITIVE THROUGH THIS TROUGH AND
COME OUT THE OTHER BIGGER, STRONGER, AND MORE FORMIDABLE. ONE OF THE
MOST GUT WRENCHING PARTS OF THIS JOB RIGHT NOW IS TO AFFECT PEOPLES
LIVES. YOU KNOW, PEOPLE WHO ASPIRE TO HOMES AND COLLEGE EDUCATIONS AND
SO FORTH. SO IT'S REALLY ONE OF THE MOST CHALLENGES PARTS THAT I'VE HAD
TO GET MY ARMS AROUND IN THE LAST YEAR SINCE I'VE BEEN WITH —

FABER: MANY CONSUMERS HAVE WATCHED THE STOCK MARKET DIVE OVER THESE LAST
THREE WEEKS, OCTOBER HAS BEEN WORSE THAN SEPTEMBER. I'VE BEEN SPEAKING
TO PEOPLE VERY CLOSE TO CONSUMER-RUN COMPANIES AND THEY SAY THEY'VE SEEN
A PRECIPITOUS DECLINE SINCE THE END OF SEPTEMBER. ARE YOU SEEING SIMILAR
KINDS OF THINGS?

NARDELLI: I THINK CERTAINLY IN THE FIRST COUPLE OF WEEKS OF OCTOBER.
WHAT I PROVED, DAVID, NO ONE IS IMMUNE FROM THIS ECONOMIC CRISIS THAT
WE'RE IN RIGHT NOW. I SAW YOU AND JOHN THIS MORNING, YOU KNOW, ON YOUR
SEGMENT, AND I THINK HE FRAMED IT VERY APPROPRIATELY. I THINK YOU ASKED
HIM IF WE WERE HEADED FOR A RECESSION. HE SAID, I THINK WE'RE IN ONE.
AND SO I THINK WE'RE SEEING, AGAIN, AN UNBELIEVABLE CONTRACTION. AND
OBVIOUSLY THE SPECULATION AND THE RUMORS AROUND THAT IS KIND OF DUE
COURSE. IT'S NORMAL ANY TIME YOU HAVE THIS KIND OF ECONOMIC PRESSURE,
YOU'RE GOING TO SEE CONSOLIDATIONS, YOU'RE GOING TO SEE PARTNERSHIPS,
ALLIANCES TO TRY AND OPTIMIZE AND GET PRODUCTIVITY AND SYNERGIES OF
TECHNOLOGY.

FABER: BUT YOU DON'T KNOW WHERE YOU'VE GOT TO OPTIMIZE YOUR COSTS ARE
WHEN YOUR IN DEMAND IS VARYING SO MUCH. IT MUST BE VERY DIFFICULT.

NARDELLI: IT'S VERY CHALLENGING, PARTICULARLY IN THIS INDUSTRY BECAUSE,
YOU KNOW, OBVIOUSLY IT'S NOT A MATTER OF JUST CANCELING AN ORDER. YOU
KNOW, TO STOCK A SHELF AS IN RETAIL. WE'VE MADE HUGE CAPITAL INVESTMENTS
IN EXCESS OF BILLIONS OF DOLLARS FOR A LOT OF THESE PLATFORMS. AND SO
WHEN YOU HAVE TO DOWNSIZE, OBVIOUSLY YOUR AMORTIZATION ON THE PHYSICAL
CAPITAL IN OUR FACILITIES, WORKING WITH THE SUPPLIER NETWORK IS
EXTREMELY CHALLENGING, DAVID.YOU KNOW, WHEN WE DID THE DUE DILIGENCE ON
CHRYSLER, WHAT WE SAW THERE'S ABOUT 1 MILLION PEOPLE DEPENDING ON OUR
SUCCESS.

FABER: IN TERMS OF ALL OF THE SUPPLIERS.

NARDELLI: YOU LOOK AT NOT ONLY OUR DIRECT EMPLOYEES. YOU LOOK AT THE
DEALER NETWORK, 3,600 DEALERS AND THEIR FAMILIES, THE SUPPLIERS, THE
LOGISTICS, THE TRANSPORTATION, IT'S A HUGE RESPONSIBILITY. AND I HOPE
THAT THE GENERAL PUBLIC, I HOPE THAT OUR LEADERS IN WASHINGTON
UNDERSTAND THE IMPLICATIONS OF THE PRESSURE THAT THE INDUSTRY IS UNDER
RIGHT NOW. AND CERTAINLY IT'S GONE FROM HOUSING TO BANKING AND I THINK,
UNFORTUNATELY, TRANSPORTATION IS FEELING THE BLUNT OF BOTH OF THOSE
SECTORS.

FABER: I WANT TO END ON THAT. AND LET ME QUICKLY ASK YOU, IN 1979,
CHRYSLER GOT BAILED OUT BY THE FEDERAL GOVERNMENT. $1.5 BILLION, A VERY
SMALL SUM IN CURRENT TERMS. IS IT POSSIBLE YOU'RE GOING TO NEED THE HELP
OF THE FEDERAL GOVERNMENT AGAIN?

NARDELLI: WELL, I THINK THAT REMAINS TO BE SEEN. WE'RE DOING EVERYTHING
WE KNOW HOW TO DO. WE'RE LOOKING AT EVERY LINE ITEM WHILE AT THE SAME
TIME TRYING TO MAKE SURE THAT WE CONTINUE A VERY STRONG PRODUCT CADENCE.
WE'RE WORKING VERY HARD TO MAKE SURE WE'RE COMPLIANT WITH THE CAFE
STANDARDS THAT HAVE PUT A TREMENDOUS FINANCIAL BURDEN ON THE AUTO
INDUSTRY. WE FULLY SUPPORT, DAVID, ENERGY INDEPENDENCE. WE SUPPORT THE
NEED FOR ENVIRONMENTAL IMPROVEMENTS, WE'RE DRIVING HARD ON INNOVATION
AND TECHNOLOGY TO MEET BOTH OF THOSE THINGS. WE HAVE TO BE VERY CAREFUL,
THOUGH, HOWEVER, AS WE TRY TO GAIN INDEPENDENCE ON OIL. WE'VE GOT TO
MAKE SURE THAT WE DON'T BECOME DEPENDENT ON BATTERIES. OUR ENVY PROGRAM
WITH ELECTRIC VEHICLES, WE HAVE TO MAKE SURE WE'RE SUPPORTING
FINANCIALLY, WORKING WITH THE ENTREPRENEURS TO CREATE THE BATTERY
TECHNOLOGIES HERE IN THE U.S. THAT ALLOWS US TO BE SELF-SUSTAINING.

FABER: WE HAVE TO END IT THERE. OKAY. BOB, THANK YOU VERY MUCH.

NARDELLI: THANK YOU.

Subcompact Car (B-Segment)

Were the companies to merge, there would be no argument over what would happen in the subcompact segment as Chrysler doesn't have one. Chevy continues to push the Aveo/Pontiac G3 as the only B-segment car sold stateside by a domestic automaker. Dodge does build the Chery-based Breeze for Latin American markets, but not for the US. There's also the Demon possibility, but that remains up in the air. Finally, the Chrysler-Nissan swap included a Nissan-built, possibly Micra-based, compact or subcompact for Chrysler — but that deal's not yet bearing any fruit.

Compact Car (C-Segment)

This is another segment where Chrysler isn't competitive, at least depending on how you classify a car. If you classify the Caliber as a compact crossover, as we do, then Chrysler has nothing and, as far as we can see, nothing on the horizon. What GM does have is the outdated, but not outsold, Chevy Cobalt, Pontiac G5 and the unpopular Saturn Astra. GM's future lineup will also include the Chevy Cruze, the successor to the Astra/Cobalt/G5.

This new vehicle should offer higher quality and mileage than current offerings. It will be a global car and, so far, production has already been mapped out for the new vehicle. The Cruze is a big part of the General's new strategy and a great opportunity for Chrysler to exit this category, stage left.

Mid-Size Car

Chrysler offers two mid-size cars in the form of the Chrysler Sebring and Dodge Avenger, both based on the JS-platform, which was developed with Mitsubishi. Both vehicles are extremely unpopular with the press. Year-to-date Sebring and Avenger sales down 10% and 9%, respectively, seem to indicate the redesign's pretty unpopular with the public as well.

GM has the truly global Epsilon platform to work with. Here in the United States the Chevy Malibu, Pontiac G6 and Saturn Aura are all plopped on top of it. Sales for all of those models are up year-over-year reflecting the popularity of these newer designs. The next-generation mid-size platform, the Epsilon II, will provide the basis for the 2009 Open Insignia, 2010 Buick LaCrosse, the next-generation Chevy Malibu and like every other model under the sun. And from what we've seen, it certainly appears to be designed competitively. Clearly, this is another segment where GM has a distinct advantage.

Full-Size Cars

Chrysler has had a lot of a success with their full-size Charger/300C platform, a rare hit for the automaker. That platform is also the basis for the 2009 Dodge Challenger, a car Chrysler is pinning a hundred thousand car sales or so on. However, the platform's old and a full refresh has been needed for at least a year. That's catching up with the vehicle and sales are reflecting the lack of a re-design. There have been reports that the 300C/Charger will get an upgrade in 2011, but we've also heard about tremendous cuts in the engineering teams, so we're not entirely sure if that's a realistic time frame.

GM, on the other hand, is in the middle of phasing out the W-body barely-fullsize platform underpinning the current LaCrosse and Impala and phasing in the Zeta-based architecture of the Pontiac G8 and Chevy Camaro into possibly the 2011 Buick Lucerne.

Chrysler has built a lot of brand equity with the 300C and Charger and proved Americans would embrace a RWD platform, at least in the days of cheap gas. However, the LX platform is ol' and busted and as we've seen firsthand, Zeta is the new hotness in RWD. GM wins this segment as well. If the Chrysler 300 or Dodge Charger continues to exist, it'll exist on Zeta.

Weird Retro Hatchback

Chrysler created a buzz with the PT Cruiser, a backward-looking retro hatchback for the new millennium. It was an instant hit and, in true Chrysler fashion, they never seriously upgraded it and have now planned for its demise after the 2009 model year. Bob Lutz, who oversaw the PT Cruiser project for Chrysler, moved to GM and, lo-and-behold, they debuted the Chevy HHR — another four-door retro econobox hatchback. Based on the Delta platform, the future of the HHR isn't entirely certain, though there haven't been talks of discontinuing the vehicle and the Delta platform will continue to be used for the near future. This is a trend we'd like to see die and we can't see the General maintaing two retro models which means the already dying PT Cruiser would be put out to pasture.

Compact Crossover

Both automakers have embraced the compact crossover concept with GM offering the Saturn Vue, Chevrolet Equinox and Pontiac Torrent, with the later two offered on the longer wheelbase version of the Theta platform and the Vue on the shorter wheelbase Theta. Chrysler offers the Dodge Caliber, Jeep Patriot and Jeep Compass on a Mitsubishi co-developed platform.

The Theta platform is planned for models into the near future, including a premium version for Saab and Cadillac. There's been little reported discussion of a new platform for the Chrysler models and the dissolution of a longstanding production deal with Mitsubishi means that Chrysler is in a position where it has to develop its own platform or, more likely, partner with someone else. This is yet another area where GM is better positioned.

Mid/Fullsize Crossover

The midsize and fullsize crossover market has been an area of increasing focus by automakers given a perceived consumer preference away from truck-based SUVs towards car-based vehicles with better road manners and fuel economy. Chrysler offers the 2009 Dodge Journey, which falls in the midsize category and is based on the Avenger/Sebring platform. GM offers four Lamda-based crossovers that are better classified as fullsize crossovers.

Though the Journey could continue selling as a smaller vehicle while the GMC Acadia/Chevy Traverse/Buick Enclave/Saturn Outlook for those looking for an alternative to a larger SUV or Minivan, the fact that the Journey relies on the sure-to-be discontinued Sebring/Avenger platform is a hindrance to its survival. Advantage: GM.

Minivan

The minivan is one of the few areas where Chrysler has a clear advantage over GM. Having discontinued the Chevy Uplander, GM has no minivan platform and is instead selling the Lambda-based crossovers in its place. Chrysler's Dodge Caravan/Chrysler Town & Country are popular minivans that have been praised by the press. The van also provides the basis for the Volkswagen Routan. GM could use Chrysler's experience and minivan design technology and, certainly, Chrysler has proven it is willing to share the platform with automakers. And oh yes, since GM would own them, that shouldn't be a problem.

Compact SUV

Chevy only offers one true compact SUV in the form of the Hummer H3, which shares a platform with the Chevrolet Colorado and GMC Canyon midsize truck platform. Though it shares the appearance of the much larger Hummer models while offering less in the way of fuel consumption, the H3 has been a victim of image and high gas prices. Similarly, neither the Dodge Nitro or Jeep Liberty from Chrysler have been able to avoid the fate other SUVs and Chrysler has already committed to cutting one of two in the near future. This is a market best left to crossover vehicles, even if gas prices continue to decrease. Neither platform appears to have much a future.

Midsize SUV

Chrysler has long served the midsize SUV market with the Jeep Grand Cherokee and, more recently, with the slightly larger Jeep Commander. We've already reported that the Commander will die quietly before the end of its first product cycle, unable to find an audience in a stunning act of poor timing. Chevy continues to sell its GMT300-based Chevy TrailBlazer, but that vehicle is more of a stop-gap between the Blazer and new crossovers.

Chrysler has already hinted that the next generation Grand Cherokee will be built at the Jefferson North Assembly plant in Detroit and may be more of a crossover. The Grand Cherokee is a grand name in the SUV market and it is unlikely that a Jeep brand owned by anyone would let it pass into non-being, whatever form it may take.

Full-Size SUV

The General is a leader in producing full-size SUVs, even if it isn't exactly the most popular market anymore. The GMT900-based Chevy Tahoeand GMC Sierra, plus the extended-length Chevy Suburban and GMC Yukon XL have historically been among the best offerings in this small market. This is a good thing for GM as it will not be upgrading the platform as soon as they'd originally planned, meaning these vehicles will be around for a while.

Chrysler reentered the market much later than GM with the Dodge Durango and the Chrysler Aspen. The future of the platform isn't entirely clear given the introduction of a new truck platform for the Dodge Ram.

In a bad economy with high gas prices it doesn't seem like quickly developing a new platform for a fullsize SUV is that smart of a bet. Luckily, both automakers have had discussions in the past about combining both companies large SUV lineups on the GMT-900 platform. Also, given the hybrid system the two companies co-developed can fit in both. It's reasonable to believe all the cars could be built on that platform. Or they could just kill the Dodge/Chrysler SUVs and call it a day.

Real Off-Road SUV

The Jeep Wrangler (and other variations) has been America's crazy, off-road vehicle of choice for generations. Whether invading foreign countries or merely invading the muddy backwoods of America the Jeep has been the vehicle of choice for adventure. The competition for this kind of rugged spirit has been the other vehicle of choice for invading foreign countries... sort of. The Hummer H2 isn't exactly, or in any way, like the Humvee used by the military. Nevertheless, the H2 was a popular vehicle with people who at least wanted to appear rugged.

Slumping sales aside, the H2 is based on the GMT800 platform previously used by GM's large SUVs and therefore would theoretically have to be replaced at some point. There may be some future for the uncertain Hummer brand merged with Jeep, but Hummer doesn't have any platforms that Jeep would want. The Wrangler's on a relatively new platform and, if it's like other Wrangler platforms, should last for another five years at least. Winner here? Chrysler. Or Jeep, rather.

Midsize Trucks

Though GM and Chrysler both make midsize trucks in the form of the GMC Canyon/Chevy Colorado and Dodge Dakota, neither has been competitive in the market recently and neither platform seems to have much future. Either the merged company develops a car/crossover-based truck to capture a different part of the segment or General Mopar just accepts defeat and abandons the segment altogether. Of the three trucks, only the Dakota nameplate seems worth saving. Maybe put it on a rebadged Frontier platform like Suzuki.

Fullsize Trucks

Perhaps the most difficult part of a merger between these two companies would be deciding what to do with all the truck platforms. We've established the GMT-900, which underpins the GMC Sierra/Chevy Silverado, isn't going anywhere anytime soon. On the other hand, the 2009 Dodge Ram is a platform that's been recently developed and will therefore not be shuffling off anytime soon either. Additionally, Chrysler announced it would be building the new Nissan Titan on the Dodge Ram platform.

Where does this leave us? For the short term it doesn't make much sense to abandon either platform and, given production capacity, it doesn't make much sense to quickly merge either truck onto the other platform. It could make sense to use the Ram to continue to bring in the buyers looking for a cheap n' dirty pickup, and try to bring in the high-dollar truck buyers with the GMT-900 twins. Eventually, they'd have to decide on one co-developed platform, but that is years off — by that time, Dodge probably wouldn't so much exist as a brand. However, since it'd be owned by GM, it could exist almost forever. Exhibit A in that story? Buick.

Sports Cars

The sports car market is easy. GM makes the Kappa-based Saturn Sky and Pontiac Solstice and Chrysler makes nothing — at least since they got out of that marriage of unequals with Daimler.

Muscle Cars

This is another tricky area as the Muscle Car Wars have just been reignited and the Dodge Challenger and the 2010 Chevy Camaro are a big part of that ongoing battle. The Camaro may have the advantage due to the fact that it's Zeta-based architecture is going to be around for a while and the car is slightly newer. The Challenger is based on the same LC/LX platform as the Charger and 300C. It probably behooves the automakers to keep this competition going for the near future as it tries to sell both. If the merger does happen the Challenger could potentially be the last remaining LX platform derived car — and exist happily as such — for quite a few years.

Halo Two-Seater Sports Cars

Both the Corvette and Viper serve as halo cars for their respective automakers, spreading excitement and capturing the adoration and imagination of prospective buyers. There are two main differences between the Corvette and Viper. Whereas the Viper is a relatively small production car at a very high price, the Corvette is a mass-produced sports car that comes in many, many flavors. The Corvette is going nowhere anytime soon but the Viper, well, we've heard bad things about its future. Again, win for GM.

Halo Environmental Cars

GM has poured its heart, soul and a lot of its money into the 2011 Chevy Volt, making it as close to a make-or-break vehicle as they've had in recent history. It's GM's next big idea. Chrysler has no big hybrid planned for the future — no matter what they say.

Pie-in-the-sky Electric Cars

Lacking a vehicle like the Volt, Chrysler has instead the Lotus-based Dodge EV electric sports car, the Jeep EV electric Jeep and the Chrysler EV electric minivan. Will these vehicles really happen? Who knows. Unlike the Volt, the EV doesn't appear to be as far along and, as far as we can tell, none of the vehicles have been approved for production.

Conclusion

Sure, there's great opportunity here and given the decimation of Chrysler's engineering ranks, the next few cars out of Chrysler or Dodge could very easily (with a few hundred million dollars) be re-badged GM vehicles. But, as Wert said — the real merger is going to be about showing GM the money. For the merger to work and really become reality, it'll be less about the product lineup than it will be about how much cash Cerberus is willing to drop on the table to go with Chrysler. Because above all, that's what GM needs. Also, a minivan. That would be nice.

[Photo Credit: Harry How/Getty Images]

We think GM platforms are going to have an advantage given that they're generally newer, more popular and shared with the General's overseas brands (Opel, Holden, et cetera). Also, numerous Chrysler vehicles are based on platforms developed with Mitsubishi a billion years ago. This isn't to say that Chrysler doesn't have some things going for it. We like Chrysler minivans and what's not to love about Jeep that couldn't be corrected by axing a few models? You are the product planner, what gets a starring role in a new company and what gets the hook?

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But we digress. The talks apparently involved several meetings between the General's big bossman, "Slick" Rick Wagoner and its president, Fritz "Free Money" Henderson. On the Ford side of the table was Bill "Willie Style" Ford; and its CEO, Alan "Boeing-Boeing" Mulally, according to the Times.

Ford spokesman Mark "News-hound" Truby responded to Vlasic's determined questioning by declining to confirm discussions between the two automakers, and adding the following:

"What we can say is that we are convinced our best opportunity is to continue to integrate Ford and leverage our global assets...that remains Ford’s focus.”

Hmm, glad to see they're still integrating a company that's been around for over 100 years. Yeah, given that need, you'd probably want to remain focused on that.

But the big question remains — if GM was for a merger with Ford before they were for a merger with Chrysler — does that make them flip-floppers, or just really desperate for another automakers cash? [NYT]

"Chrysler LLC as a matter of policy does not confirm or disclose the nature of its private business meetings. As we have said, the Company 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."

[CNBC, NYT]