New York - Ailing US automotive giant General Motors denied reports Thursday that it was holding merger talks with its likewise stricken competitor, Chrysler.

A GM spokesman at company headquarters in Detroit, Michigan said there were clearly no talks about a merger going on.

The comment came to reports in the business daily Wall Street Journal - citing industry insiders - that the two automotive groups had resumed merger talks which had been broken off a few weeks earlier.

The paper said the resumption of talks had come about after Chrysler's owner, Cerberus Capital Management LP, had signalled its readiness to cede part of its ownership.

Wall Street Journal said that Cerberus started the talks anew at a point as cashe was becoming scarce at both GM and Chrysler.

On Wednesday, Chrysler announced plans to shut down all 30 of its plants for at least a month starting on Friday, with unsold cars and trucks clogging dealership showrooms.

The speculation of a GM-Chrysler merger comes while President George W Bush is mulling an emergency assistance package of as high as 14 billion dollars for the two carmakers. (dpa)