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Wednesday, October 29, 2008
Unless you have been hiding under a rock for the past few weeks, you've probably heard about the ongoing merger talks between General Motors and Chrysler LLC. Today, a consulting firm from Michigan named Anderson Economic Group of East Lansing released an analysis concerning the various impacts of such a tie up. Not surprisingly, the report says that if GM goes ahead and acquires the Chrysler group, 25,000 to 35,000 people employed by the two automakers will lose their jobs."There is no scenario where GM and Chrysler avoid significant reductions in employment -- none," CEO Patrick Anderson said. -Continued
The analysis concludes that 10 assembly plants, of which three, are likely to be in Michigan will be forced to close. Michigan will be hit hardest losing anywhere between 18,000 to 25,000 white-and-blue-collar jobs over a one- to two-year period after the merger.
And to make matters worse, the Anderson Economic Group of Lansing said that the other alternative of Chrysler LLC being sold in pieces would cause even greater job cuts. "It's a much bigger job loss and a much bigger taxpayer hit if Chrysler simply goes out of business or is dismantled," CEO Anderson said. As a whole, the Chrysler group which owns the Chrysler, Dodge and Jeep brands employs around 49,000 people in the U.S. and supports about 125,000 retirees and their spouses.
