Report: GM merger could axe all but seven Chrysler models

One of the more worrying scenarios resulting from a possible merger between General Motors and Chrysler is that the Auburn Hills carmaker could be absorbed entirely by GM, meaning most of its models, plants, dealers, and employees would be dropped. Chrysler, along with Dodge and Jeep, would then become just another GM subsidiary, but such an outcome is unlikely given the General’s desire to streamline its operations and reduce its model portfolio.

This has lead influential consulting firm Grant Thornton LLP to predict that a merger between the two carmakers would result in the closing of as many as half of Chrysler's factories and elimination of all but about seven core models, reports Automotive News. Such a situation would see between 100,000 and 200,000 jobs cut from the combined corporation, respective suppliers, and other industry stakeholders.

Grant Thornton expects an announcement to be made as soon as Tuesday, aligning with previous reports that suggested the carmakers wanted a decision before the November 4 presidential elections.

"Chrysler as we know it will cease to exist very soon," Grant Thornton analyst Kim Rodriguez explained. "There are few options available to either company."

Chrysler currently has 14 factories, two of them already scheduled to close: Newark, Del. and 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, namely the plants responsible for the Chrysler Sebring, Dodge Avenger, Jeep Liberty, Dodge Nitro, and Dodge Ram pickup series.

Chrysler’s surviving models, Rodriguez predicts, would likely be the Dodge Ram pickup, Chrysler and Dodge minivans, and several Jeep models, including the Wrangler and Grand Cherokee.