According to an analysis of Grant Thornton LLP, if GM will succeed buying Chrysler from Cerberus Capital Management, 74, 000 jobs will be cut, most of them in North America.
In first phase, GM would cut 12,000 hourly and 12,000 salaried Chrysler employees, including the 5,000 salaried jobs cuts Chrysler announced last week. Indirect effects will conclude to another 50,000 jobs (suppliers, advertising, shipping …).
If merger will happen, GM will close 14 plants, (including three already tagged for closing) and would probably retain just seven of Chrysler’s 26 models, including the Dodge Ram pickup truck, Jeep vehicles and minivans.
Anyway, the consulting firm said that merger is the best way not only for Chrysler, but for employees too. It says the failure of either company would be a bigger calamity, triggering a collapse of the North American supply base and endangering the two remaining domestic automakers. The consulting firm concurs that a merger would be less painful than the bankruptcy of one of the three companies.