Source: Special email alert from Automotive News
Bradford Wernle - Automotive News - 10/30/08 4:00 p.m. EDT
DETROIT -- A merger between General Motors and Chrysler LLC would result in the closing of as many as half of Chrysler's factories and elimination of all but about seven core models, according to a report by consulting firm Grant Thornton LLP.
A deal also could result in a loss of 100,000 to 200,000 jobs at the two automakers, suppliers and other industry stakeholders, said Kimberly Rodriguez, principal of Grant Thornton's automotive practice.
Rodriguez said she believes negotiators could reach an agreement in principal as soon as Tuesday, Nov. 4, election day. Reuters reported yesterday that GM and Chrysler's owner, Cerberus Capital Management LP, have resolved major issues and the final form of any accord will depend on financing and U.S. government support.
"Chrysler as we know it will cease to exist very soon," she said at a briefing with reporters today in suburban Detroit. "There are few options available to either company."