GM merger would eliminate most Chrysler vehicles

A merger between General Motors and Chrysler LLC would result in the closing of as many as half of Chrysler's factories and the elimination of all but seven of its 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 automakers, suppliers and other industry stakeholders, said Kimberly Rodriguez, principal of Grant Thornton's automotive practice.

Rodriguez said negotiators may reach an agreement in principal as soon as Tuesday, Nov. 4. 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."

The blended companies would command about one third of U.S. auto sales. "Despite the significant number of families that will be impacted, the benefits of combining the two companies are both structural and strategic," Rodriguez said.

Surviving Chrysler vehicles would likely be the Dodge Ram pickup; Chrysler and Dodge minivans; and several Jeep models, including the Wrangler and Grand Cherokee.

[Editor's Note: Then what would Chrysler/Dodge race in the Sprint Cup series? Answer – nothing. Their days are numbered.]