General Motors Corp. and Chrysler, the two major U.S. auto makers denied a report Thursday that they had restarted talks to combine the ailing automakers, according to sources of the two companies.

GM spokesman Tony Cervone said GM's stance on the merger talks has not changed since the automaker announced on Nov. 7 that it had suspended them, adding the company focused on improving its liquidity. He said there had been no ongoing merger talks between the two companies since that announcement.

Chrysler also denied the report. "There is no truth to the rumor. Chrysler is not in discussions with General Motors," Chrysler spokeswoman Shawn Morgan said.

GM and Chrysler began talking in September about combining, but talks fell apart after the companies couldn't raise enough money to finance the deal. Chrysler has reiterated it is still pursuing additional alliances or other partnerships.

The report emerged as the Bush Administration mulls options to provide immediate aid to the two automakers after the Senate failed to approve US$14 billion in loans for GM and Chrysler to prevent them from collapsing.

U.S. automakers face sinking sales and have taken steps to reduce expenses and production. Chrysler said it will close all of its factories in North America starting Friday for at least a month.

Ford Motor Co. is extending its holiday shutdowns at 10 plants by a third week, while GM has postponed work on a engine factory with total investment of US$370 million.

(Xinhua News Agency December 19, 2008)