http://money.cnn.com/2008/02/08/news/companies/chrysler_project_genesis/NEW YORK (CNNMoney.com) -- Chrysler LLC unveiled plans Friday to reduce the number of dealerships in its network, a move that will enable the company to more easily drop unprofitable products.
The goal of the plan, which the company calls Project Genesis, is to have a smaller number of dealers, with each selling all three of the company's brands: Chrysler, Dodge and Jeep.
Company executives recently completed an eight city tour during which they explained the strategy to local Chrysler brand dealers, the automaker said.
"In the end, we will have a more viable dealer body focused on the customer," Chrysler Vice Chairman and President Jim Press said in a statement.
"When that happens, the customer, dealer and company wins. That builds commitment, drives profitability and builds franchise value," he said.
Until last fall, Press led the U.S. operations of Toyota Motor Co. (TM) He is now co-president at Chrysler along with former Chrysler CEO Tom LaSorda.
Combining the brands into single dealerships would make it easier for Chrysler to cut unprofitable models from its portfolio. It would reduce pressure on the company to produce essentially the same vehicle with modest design changes - something automakers do to ensure that each brand gets a good mix of vehicles for dealers to sell.
Chrysler currently has several car and SUV models that are, in effect, the same vehicle sold under different brands. These include the Chrysler Sebring and Dodge Avenger sedans, the Dodge Caliber and Jeep Compass small cars and the Chrylser Town & Country and Dodge Caravan minivans.
Chrysler said the company had not set a timeline for the strategy. Because most car dealerships are independent businesses, not directly owned or controlled by the car company, dealership closures must be negotiated one at a time, a process that can take years.
I thought every dealer what a chrysler/dodge/jeep dealer already.
