Chrysler's Project Genesis: Trim models, consolidate dealers
Chrysler's previous consolidation strategy, dubbed "Project Alpha," was implemented in 2004 to trim and combine dealers. All told, Chrysler was able to cut its dealer network down from 4,000 to 3,600. Not nearly enough to get outlets on par with demand. So Chrysler's co-pres, Jim Press, announced today that Project Alpha is out and Project Genesis is on the way in.According to Automotive News, as you read this, business teams are fanning out across the U.S. to negotiate with dealerships to either buy other outlets or sell their own in an effort to pair down Chrysler's bloated sales network. The plan is to get all three of the automaker's brands – Chrysler, Dodge and Jeep – under one roof, with the possibility of creating satellite dealerships and service-only facilities in outlying areas.
But if all of Chrysler's wares are in plain sight of the public, won't that confuse consumers with all the product overlap between brands? Yes. And that's why Chrysler is looking to nix models that are badge-engineered duplicates of other vehicles offered by the automaker. So in addition to killing off the PT Cruiser, Pacifica, Crossfire and Magnum, more models are about to be cut out of the line up. We'd mention a few suggestions here, but we're sure you can come up with some of your own.
However, it's not all about the cuts. Press went on to say that Chrysler would develop new models to compete in segments that the automaker previously hasn't pursued and that even though sales outlets are going to be consolidated, Chrysler doesn't have the ability to hand out massive checks to dealerships on the chopping block.
[Source: Automotive News – Sub. Req.]
Get a WordPress.com Blog
Reader Comments (Page 1 of 2)
Tsunami Racer 7:41PM (2/07/2008)
"Press went on to say that Chrysler would develop new models to compete in segments that the automaker previously hasn't pursued..."
you mean those that sell and make money, Jim?
Reply
fubar 7:41PM (2/07/2008)
Jeep Compass, chrysler aspen
Reply
John 8:03PM (2/07/2008)
The Chrysler unit will be divided into two divisions: unit Alpha and unit Zappa.
Reply
MachinaDC5 8:11PM (2/07/2008)
I love how "Project Alpha" is clearly "Plan A" with an unclever disguise.
Reply
Jared 8:31PM (2/07/2008)
The need to cut the number of dealers at least in half. But they're going to find that it is easier said than done. And Chryslerbus doesn't have the cash to buy out the ones that need to be bought out.
Reply
Ben 9:05PM (2/07/2008)
They really shouldn't be dropping the Pacifica. It's one of their better models. I agree about the Crossfire. It's too bad about the magnum, though. all it needs is a bit of re-engineering, especially the interior. The PT either needed a replacement or would be discontinued, so they're just saving money there.
Chrysler really needs to address their newer models. The avenger/sebring is a big disappointment, they need better interiors to compete.
The Aspen looks nice, but its redundant. not worth premium over Durango.
I would keep the Patriot, fix the interior, and dump the Compass, but they are both selling so might as well keep them.
The Nitro/Liberty interiors really need work, too.
Reply
catgirlshyla 9:05PM (2/07/2008)
Scrap the Dodge Demon unless they give it a proper RWD treatment.
Reply
Taylor 9:26PM (2/07/2008)
Lessee here.
Dodge: Keep doin what you are doin with the Ram. No changes, the new interior is pretty spiffy. Smack the person(s) who had the Magnum killed. Drop the Pacifica, they just look out dated. Give that Demon RWD like Catgirl said. Slightly update the Charger to give it some sharper lines. Let the Challenger smear all over the Mustang, but DO NOT, I repeat, DO NOT waste money on the sebring and avenger. As for the Viper, don't dump it.
Reply
Brent 9:28PM (2/07/2008)
@ Taylor
You give terrible advice.
Reply
Taylor 9:32PM (2/07/2008)
Glad to know you care. ^_~
Reply
Gardiner Westbound 9:41PM (2/07/2008)
Chrysler would be better off with a half dozen good cars than the ton of lackluster product they are trying to flog on a disinterested public now.
Reply
C.W. 9:47PM (2/07/2008)
Jeep should just be Wrangler, Grand Cherokee, and Liberty. FWD Jeeps are a joke. The only logical reason I can see for having them is for CAFE. Dodge should do for the Avenger what Chevy did for the Malibu. This current version isn't cutting it. Dakota is too close to the Ram. If you want a V8, buy a Ram. How many other automakers sell a small pickup with a V8 (not counting Sport Trac, I guess). None, and it's because if you're buying a smaller truck you probably don't need a big engine anyway. Magnum wasn't really bad, but I can see where it didn't appeal to everyone. Chrysler should core it down to just 300, Sebring (a DECENT version, not current), and T&C.
It would be nice to see a Chrysler sport coupe in the future. Not like the Crossfire, but an actual competitive, reasonably affordable car. It would also be nice to see a Jeep truck(let). But those should ONLY come once financial stability has been achieved and maintained
Reply
iOrange 10:17PM (2/07/2008)
@CW
Smartest thing posted all day
Reply
JMC 3 10:35PM (2/07/2008)
Suggestion...They need to build on the success and cred of the 300 and do a coupe version of that (next gen,design refreshed) car with an eye on doing a retractable hardtop version
Reply
LNDMN01 11:27PM (2/07/2008)
How about they just work on getting my parts that I've been waiting on for 5 months? Seriously, will any of this matter if the service isn't there to support it?
Reply
Dave 10:54PM (2/07/2008)
What a mess. They need to cut a lot of models from Jeep.
Reply
Tragedy 11:42PM (2/07/2008)
Just give up, Chrysler. Hell, Detroit for that matter. Like it or not, the imports win.
Reply
mk 12:06AM (2/08/2008)
Wow. Nothing like co-opting hyundai's market name.
Lets see here.... Chrysler, Dodge, and Jeep.
Concentrate on the basics, and master them first. Fundamentals, fundamentals, fundamentals. (do I sound like a jr. high PE coach, yet? :D)
Four car lines each, for Chrysler and Dodge. Big and mid, and small, and coupe.
Jeep does 4 or 5 different sized SUVs, compact CUV, Wrangler, Liberty, Cherokee, and Big Comanche. Dodge does trucks, but only trucks, not SUVs.
Big RWD: 300D, Charger. Update with slightly more modern, slightly less retro style. NICE new interiors.
Mid FWD: replacements for Sebring and Avenger. GOOD replacements, with NEW names. existing is ruined. Clean sheet. Compelling inside and out. HIGHEST PRIORITY.
Compact: handsome small chrysler, sporty small dodge, and not the Caliber body. The Caliber looks more like an SUV than a car, and not as boring and "hi" as the Neon or PT Cruiser were. Compelling style inside and out is required, because that is all it has over japanese competitors.
Coupe: Challenger is here, 'nuff said.
A Chrysler crossfire/firepower new, modern, slick car. Lighter weight, smaller displacement, but still RWD. Split the price difference between Hyundai Genesis coupe, and G37 6MT Sport, and lighter weight than both. V6 or turbo V6 as the main line engine, V8 SRT model.
Maybe make it a convertible hardtop, and let the Sebring 2-door DIE!!! The Chrysler coupe/convertible does NOT need to be tied to the mid-size FWD sedan. It can be platform shared with, and differently styled than the Challenger, on RWD chassis, just not quite so big and heavy in the bodywork department.
Dodge Journey as a CUV/Tall wagon should be nice for the folks lamenting the Pacifica's departure, or otherwise cross shopping the Ford Flex. (if that actually describes anyone) or the Infiniti EX35. A bit more fashionable than the minivans.
Dodge has the Ram. Ditch the UGLY dakota and Durango, as well as the Aspen. Leave the SUVs to Jeep, where they belong.
Bring in a smaller trucklet, like the Rampage concept, that is significantly different than the Ram itself, for a smaller alternative, and competition to the Sport Trac or the Ridgeline. Not everybody needs a team of oxen, sometimes you only need a horse.
Keep the Viper. It doesn't do that much harm to the bottom line, and it still acts as a halo. Probably not a top priority, though.
Jeep. Junk the little crap, except perhaps "jeeping" up the Caliber, MAYBE. The existing Compass/Patriot are weakly styled. Caliber is more assertive looking than those. Vertical slot grille and round reflector headlight elements, and you are just about done.
WRANGLER. 2-door, 4-door, 2-door trucklet, diesel powered, and flavors for any purpose. Maybe even a sleek little buggy-coupe body, like the Jeepster concept, to compete with the Hummer HX, or Range Rover coupe concept, if either come to market. This is Jeep's iconic model, even while being affordable.
Cherokee. Drop the GRAND part on a new design. Grand Cherokee becomes just Cherokee (yeah, I know they used to be two different things...) and high end becomes Cherokee Wagoneer, or Cherokee SRT8. New design should be truly an improvement to the four-door SUV genre, and become a truly class-leading vehicle. Beat Explorer and the Lambda GMs, like a Jeep should. This is the Jeep market leader.
Liberty is a good name, but should never have been "Commandeered" styling-wise. It should take the place of the past plain cherokee, much as it has, perhaps with a bit more CUV civility. Wrangler is the small-sized rock crawler, Liberty can afford more civility. Maybe even completely re-bodied Dodge Journey.
If there MUST be a big SUV, then SUV-ize the Ram, and put a jeep face on it. Call it Comanche, or something, going against the Expedition and Suburban/Tahoe. Only if there is a business case that is profitable. The Commander was the WRONG vehicle, but that doesn't mean Jeep can't have a big dog.
Jeep doesn't need a small pickup aside from the Wrangler JT multi-purpose vehicle. Let Dodge handle the small truck, with the previously mentioned Rampage.
Chrysler goes near-lux/premium, with a modern sporty coupe.
Dodge goes to muscular sporty, and a bit more affordable than Chrysler brand, big and small trucks, and the Challenger muscle car.
Jeep does all of the SUVs, and only SUVs, and doesn't fool around with overly pedestrian junk.
All of those can live harmoniously under the same roof, and cater to MOST of the mainstream genres and segments that Chryslerberus competes in.
Reply
AZMike 12:26AM (2/08/2008)
they've been doing consolidating for almost ten years, and there isn't much more left to do, thankfully.
what's left now are very strong Chrysler/Jeep dealers, and very strong Dodge dealers. there is no need to combine them, as dealers who wanted to sell out or combine have already done so. unless the dealers agree amongst themselves to do it, leave them alone. all the dealers have signed agreements with Chrysler, and the factory CANNOT summarily terminate a franchise.
I fail to see how folks can say "there are too many dealers". who are you to decide? would you prefer less competition, and convenience? would you rather trade competition for colusion? whenever choices are limited, prices go way up.
I'm glad every state has ironclad laws to protect dealers from manufacturers. every dealer is an independent businessman, and should be completely free to make their own decisions.
I'm sure Mr. Press would like to see fewer dealers like his former employer, Toyota, had. less outspoken voices, less competition, more colusion, and more control.
AZMike
Reply
BlazerUnit 12:42AM (2/08/2008)
If Chrysler has a certified used car program, I'd bribe a few smaller dealers to take that instead of keeping a full fledged dealership.
As far as the brand mix, it's not that difficult. Dodge is your mainstream brand, challenging Ford, Chevy, Toyota, et. al. Chrysler takes on Lincoln, Buick, perhaps Saturn. Jeep gets the SUVs and adventure vehicles, in both bang-for-buck and luxury trim.
Reply