Landry: Chrysler's consolidation will spawn service-only stores

Steve Landry: "You need to have the right number of stalls."
DETROIT — Chrysler will create stand-alone service stores as part of its dealership consolidation plans, says Steven Landry, Chrysler executive vice president of North American sales.

The stand-alone service centers will be created in some metropolitan markets as one Chrysler LLC dealer buys another, Landry said after a speech last week.

He said the company approved one stand-alone center last week but wouldn't give the location. It will be about two years before any of the centers are operating, Landry said.

The strategy is designed to meet customer demand for service as the number of dealerships shrinks.

"If we all of a sudden go from 80 stalls to 40 stalls, we don't want to do our customers a disservice," Landry said. "We want them to be handled just as quickly as they were before."

Chrysler is in discussions with "under 10" retailers about the strategy, he said. Landry gave no details about markets or dealerships.

"In some cases, where one dealer is buying another one in a situation where there are not enough service stalls, the buying dealership will be able to use the other dealership service stalls as a stand-alone service center," Landry said. "You need to have the right number of stalls." 

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