DETROIT (Reuters) - A potential merger between General Motors Corp and Chrysler LLC could result in the closing of at least four more of the No. 3 U.S. automaker's factories while 16 of its vehicle models were at risk of being eliminated, according to a study by Grant Thornton.
A merger between GM and Chrysler is the best option under the circumstances, said Kimberly Rodriguez, principal of Grant Thornton's automotive practice.
"It's not optimal but positive in the current environment," she said.
GM has been in talks with Cerberus Capital Management since September about a merger with Chrysler LLC, the struggling U.S. automaker owned by Cerberus.
The study said Chrysler has 26 vehicle models, of which only seven were core.
The study also estimates that about $6 billion to $10 billion in costs could potentially be taken out of a merged company.
(Reporting by Poornima Gupta, Editing by Phil Berlowitz)
