GM President Frederick Henderson and Vice Chairman Bob Lutz also want to conclude an agreement quickly, the sources said. Chairman and CEO Rick Wagoner is said to subscribe to the logic of such a deal but seems more guarded about the prospect of putting together two money-losing automakers facing similar challenges, the sources said. Some GM directors share those concerns.

Under one scenario being discussed, GM would absorb Chrysler and draw on its cash hoard—$11.7 billion on June 30—to wind down some of its businesses, brands and dealerships to slash costs. The other potential suitor for Chrysler, the Renault-Nissan alliance, is weighing whether to continue negotiations in this tricky financial climate.

Cerberus and GM declined to comment on the Detroit News story.

Detroit’s automakers are losing money and their market value has shrunk dramatically. According to the assessment of major banks, the U.S. automakers are not able to invest sufficiently in future products and technology to remain competitive, and they cannot obtain credit in this climate. Their dire situation poses a problem for major banks, including Bank of America, Citibank, J.P. Morgan Chase and Wells Fargo, whose combined exposure to the industry runs into the tens of billions of dollars, said one source close to the situation.