Grant Thornton: "Chrysler as we know it will cease to exist very soon"

Accountancy Grant Thornton LLP suggests that a merger between GM and Chrysler is inevitable, as any alternative would be worse:

“Chrysler as we know it will cease to exist very soon,” said Kimberly Rodriguez, principal of Grant Thornton’s automotive practice. “At this point, there are very few options available to either company. We believe a transaction between GM and Chrysler is likely because it would be the most expedient way to protect cash and jobs at both companies. If one or the other company were to fail, we would face a much bigger calamity — the collapse of the North American supply base and the potential endangerment of all three Detroit automakers and businesses that depend on them.”

Grant Thornton’s automotive advisory experts estimate that as many as 74,000 people may lose their jobs as a result of the merger: 12,000 production workers, 12,000 administrative workers, and up to 50,000 employed by suppliers.

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