The president of the Canadian Auto Workers union says the reported merger talks between General Motors and Chrysler will only make employees less secure, while Ontario's premier supports the move.

The New York Times has reported that talks between GM and Cerberus Capital Management, which owns Chrysler, were initiated last month. The negotiations are apparently uncertain to produce a deal. A Wall Street Journal article, however, said that merger talks have been suspended due to the financial-sector economic crisis, which sent international markets tumbling this week. On Thursday, GM lost 31 per cent of its value.

The CAW's Ken Lewenza told The Canadian Press that partnering opportunities in the automobile industry are routinely examined. While the reported discussions may not be surprising, Lewenza said the reports just add insecurity felt by those working in the Canadian auto industry. Meanwhile, Ontario Premier Dalton McGuinty said his government would support any venture between the auto companies that would help enhance their strength in the long term. The New York Times said it spoke to two people close to the talks and the sources put the chances of a merger at "50-50."

The paper also reported that Cerberus, a private equity firm, is also in talks with other automakers including Nissan and Renault. "Without referencing this specific rumour, as we've often said, GM officials routinely discuss issues of mutual interest with other automakers," GM spokesman Tony Cervone said, according to The Associated Press. "The company is looking at a number of potential global partnerships as it explores growth opportunities around the world," Chrysler spokeswoman Lori McTavish said. "Beyond those partnerships already announced, however, Chrysler has not formed any new agreements and has no further announcements to make at this time."