Chrysler dealers urged to merge

Press: Only 3-brand stores will have full product lines

Chrysler LLC plans to prune its product lineup to the point that only dealers carrying all three of its brands — Chrysler, Dodge and Jeep — will have a full vehicle line, co-President Jim Press says.

The automaker will drop redundant vehicles and urge dealers to merge into three-brand stores as part of Project Genesis, which Press and other executives have presented to regional dealer groups in recent days.

Although Project Genesis is still being developed, Press said that "as our product line evolves, it will become clear that a dealer won't have a full line of products unless he has all three lines under one roof."

Press said Chrysler must quickly solve the problem of too many unprofitable dealerships selling redundant products.

"If (dealer) consolidation doesn't occur before the product goes away, it will be more difficult for dealers to get what they want" for their stores, Press said at the J.D. Power Automotive Roundtable yesterday.

Press said media reports of specific reductions in Chrysler, Dodge and Jeep dealer count and product portfolio were inaccurate.

"There were no numbers given (to dealers), just directional concepts," Press said in an interview. He said the plan will be implemented within four or five years.

In regional meetings, dealers were given hypothetical market studies for the Boston and Denver regions in which numerous dealerships were deleted. But Press cautioned that results in those studies were not hard targets.

Similarly, regarding product, Press said everything is under review.

"Do we need 11 SUVs when we sell a million and a half (total vehicles) retail?" Press said. "Maybe we just need three or four."

But for every product deleted, another niche-oriented product is likely to replace it, Press said. He plans to give details to dealers at the Chrysler make meeting tomorrow.

You can reach Mark Rechtin at mrechtin@crain.com.


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ENLARGE
Chrysler's Jim Press: "Do we need 11 SUVs? Maybe we just need three or four."
Photo credit: JOE WILSSENS


 

 

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