General Motors Corp. has kicked off formal talks with potential buyers for its struggling Hummer sport-utility-vehicle division, even as it engages in negotiations to merge with Chrysler LLC.

A Hummer spokeswoman said the auto maker has begun sending out a sale prospectus for Hummer, but she declined to comment on GM's timetable for selling the brand and its potential price tag. Jim Taylor, Hummer's new chief executive, will head negotiations with interested parties.

A sale of Hummer would bring GM some much-needed cash. Because the company is losing money and facing an economic downturn, analysts believe it could run short ...