GM and Chrysler are moving in on a deal that could result in a GM/Chrysler mergers causing as many as half of Chrysler’s factories to close and about seven of the Cerberus owned company’s models to be wiped out.
According to a report by consulting firm Grant Thornton LLP, the deal would cause a loss of about 100,000 to 200,000 jobs between the two companies, suppliers and other involved in the development of Chrysler vehicles. Grant Thornton LLP says that a deal could be reached as soon as Election Day on Nov. 4.
Chrysler has already announced the sale of its Viper business. Grant Thornton says that an additional four plants will close along with the two closings already announced. Models that could be discontinued include the Chrysler Sebring, Dodge Avenger, Jeep Liberty, Dodge Nitro and the Dodge Ram pickups.
After GM/Chrysler merge, the new company will own about one-third of U.S. automotive sales.
Source: Automotive News (Subscription Required)