As speculation and talks continue about the ensuing GM-Chrysler merger, a consulting firm has released a report that shouldn’t surprise anyone: If the merger happens, most of Chrysler’s models will be eliminated.
The report by consulting firm Grant Thornton LLP says that all but seven of Chrysler’s models will be eliminated as well as up to half of its factories. The merger could also result in a much greater job loss than the 35,000 previously predicted. Grant Thornton puts the estimate in the range of 100,000 to 200,000 jobs between the two automakers and suppliers.
As was previously reported, the merger is all but a done deal. The major issues have all been resolved and the merger rests solely on financing. The automakers await the capital and U.S. government support to make the merger go through.
Kimberly Rodriguez said “Chrysler as we know it will cease to exist very soon. There are few options available to either company,” at a briefing with reporters in Detroit. The merger “is not an optimal solution,” however, Rodriguez thinks one or both companies going out of business would be worse.
It will be a sad day for Detroit when we see Chrysler close its doors for good.
Source: Automotive News