GM Chrysler Merger Vehicle Impact
According to Automotive news the merger between the 2 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 an agreement in principal could be reached by as soon as Tuesday, Nov. 4, election day.
Chrysler now has 14 factories, two of them already scheduled to close: Newark, Del.; St. Louis South.
Chrysler has also offered its Viper business for sale, along with the Conner Avenue plant in Detroit where the sports car is made. Grant Thornton believes an additional four plants could close. Among the plants on the cusp would include Sterling Heights, Toledo North , St. Louis North (Dodge Ram) and Saltillo, Mexico (Dodge Ram heavy duty trucks).
The blended companies would command about one third of U.S. auto sales.
Chrysler now has 26 models, but only seven are core. Surviving Chrysler vehicles would likely be the Dodge Ram pickup; Chrysler and Dodge minivans; and several Jeep models, including the Wrangler and Grand Cherokee.
The merger would provide several benefits:
• GM's leadership in plug-in hybrid technology
• A stronger position in full-size pickups, displacing Ford as industry leader
• More liquidity, thanks to the cash on Chrysler's balance sheet
• Cost reduction by elimination of overlapping staffs, especially in sales, marketing and administration.
|