Oct. 14 (Bloomberg) -- A General Motors Corp.-Chrysler LLC combination wouldn't win the support of auto unions in the U.S. and Canada because jobs would be lost, the labor groups' presidents said.

``We have not had any discussions formally with any of the companies,'' United Auto Workers President Ron Gettelfinger said today on Detroit radio station WWJ. ``I personally would not want to see anything that would result in a consolidation that would mean the elimination of additional jobs.''

The comments by Gettelfinger and Canadian Auto Workers President Ken Lewenza follow reports that GM and Chrysler have discussed a possible merger. Cerberus Capital Management LP, which owns 80.1 percent of Auburn Hills, Michigan-based Chrysler, is in talks with Detroit-based GM about combining the companies, five people with knowledge of the talks have said.

``I think you could convince them,'' David Cole, chairman of the Center for Automotive Research in Ann Arbor, Michigan, said of the unions. ``Profitability over the long term is the only job security these guys have.''

GM, the largest U.S. automaker, and Cerberus aren't in negotiations over a specific deal involving Chrysler, according to a person with direct knowledge of the situation. Cerberus also is in talks with other automakers. In any transaction, Cerberus would seek to keep an equity stake in the combined company and may put in additional cash, the person said.

Chrysler Adviser

JPMorgan Chase & Co. is advising Chrysler, the third-largest U.S. automaker, on the potential sale, according to two people familiar with the situation. JPMorgan was one of the banks that raised money for funding of Chrysler as part of the Cerberus purchase.

Neither GM nor Chrysler has commented on whether such talks have occurred. A merger or partnership might let the two companies reduce costs by trimming overlapping operations and consolidating plants, while probably not solving their financial problems, analysts have said.

Lewenza said in an interview that the CAW hasn't been approached by either company about merger discussions.

``Somebody has to tell me where the last time there was an auto merger that was good for workers,'' Lewenza said. ``It would be troublesome for us because we see a lot of similarity in their products and obviously some of those products would be lost,'' with jobs cut along with them.

Deutsche Bank analyst Rod Lache estimated that a combined company might produce $6 billion in savings while still failing to assure ``long-term health.''

``It is unlikely that the combined entity would be able to maintain 11 distinct brands and roughly 30 percent market share,'' the New York-based analyst wrote in a note to investors yesterday.

GM rose 3 cents to $6.54 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have fallen 74 percent this year, the most among the 30 companies in the Dow Jones Industrial Average.

To contact the reporter on this story: Mike Ramsey in Southfield, Michigan, at mramsey6@bloomberg.net

Last Updated: October 14, 2008 17:13 EDT