Dealers praise/criticize Chrysler's Project Genesis
Chrysler's restructuring plan and new plan for product development named Project Genesis is facing some expected criticism from many dealers. However, others are praising the cost-cutting, model-trimming and dealer-consolidation program that's happening as a result. As Chrysler pressures its traditional dealer network to sell all three brands (Chrysler, Jeep and Dodge) under one roof – without any financial assistance to help those already struggling with slow sales – many dealers are having a difficult time with the expense of investing in larger facilities to meet the Project Genesis requirements.
According to Chrysler, a one-brand dealer won't be able to survive with its limited vehicle offerings after Chrysler trims down its model lines (expected to be complete by 2012). This is forcing dealers to add the other brands, or shut their doors as sales slowly dwindle. Conversely, the closure of some dealers is having a positive effect on others. With padlocks now on the front doors of their competition, the surviving dealers are experiencing significant growth in vehicles sales, parts and service.
[Source: Automotive News, subs. req'd]
Reader Comments (Page 1 of 2)
Soccer Mom 4:34PM (6/02/2008)
In Canada, as far as I know, all three brands have been consolidated for years. I have never come across Jeep or Dodge dealership.
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geo.stewart 4:40PM (6/02/2008)
dont think I've ever run across a dealer that wasnt cjd. and if they do it right, they will aim squarely at Pontiac/Buick/GMC
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PJ 9:44PM (6/02/2008)
I can never read about Project Genesis with a straight face. It just recalls too many memorably bad lines from Star Trek IV.
Chrysler should know; Khan did their Cordoba commercials.
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Frank 9:58PM (6/02/2008)
Project Genesis was Star Trek II, the Wrath of Khan. IV was the Voyage Home (the "save the whales" comedy movie). But hey, ST II had the starship Reliant. Mad magazine called it the USS Reliant K.
Eng.CuoreSportivo 4:45PM (6/02/2008)
good luck
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mroverlord 4:55PM (6/02/2008)
There are a number of Dodge-only dealerships around the US, and you can easily find dealers that are only Chrysler/Jeep..but I have never seen a Jeep-only or Chrysler-only dealer.
I know of at least 4 dealerships here that are cutting down to 2. The ones closing are selling out to the larger, and taking the money and running.
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Toledo Guy 8:48PM (6/02/2008)
We had 2 Dodge only dealers, 1 Chrysler only, and 1 Jeep only dealer here in Toledo. One of the Dodge dealers sold out to the Chrysler dealer. Chryslers goal for Toledo is 3 multibrand dealers. The Dodge/Chrysler dealer and Jeep/Chrysler dealer have both agreed to allow each other to add the line they don't currently carry. So right now we'll still have 1 Dodge only and 1 Jeep only. They both are in the same general area, so I imagine some kind of deal will be worked out and Chrysler added to the surviving dealer.
rouse42 4:59PM (6/02/2008)
lets rename it Project Genocide and get it over with already.
does the world really need Chrysler?
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71cuda 5:03PM (6/02/2008)
Keep in mind, this program has been around for a while, just not as Project Genesis. The Chrysler/Jeep consolidation has been around a long time.
The big difference is that Cerberus will eliminate the redundancy between the brands, forcing the single point dealers' hands.
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iSpec 5:07PM (6/02/2008)
Didn't Hyundai already coin 'Genesis'. This term hits like a bad plastic interior.
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Seoultrain 5:24PM (6/02/2008)
There's a Dodge-Hyundai dealer in Paramus, NJ. Yeah, weird.
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dpb! 5:38PM (6/02/2008)
Hmmm let me guess...
People Not Happy: Owners of dealerships already going under
People Happy: Those dealerships that will survive.
Sounds like a good plan to me and if you make it, you make it!
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ML 6:01PM (6/02/2008)
I hope Chrysler pulls this off. All of their dealerships should carry all Chrysler Corporation vehicles. It'll cut costs - in the long run - and, hopefully, help Chrysler stay in the car business. GM and Ford should be doing the exact same thing. Detroits "big three" are really no longer competitive in this market, but their competition is the global. There are too many imports on American streets that are eating away at domestic car sales for GM, Ford, and Chrysler not be pulling in the ranks and facing their competition more wisely.
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Chris 6:06PM (6/02/2008)
We have a solo dodge dealer in Marietta Georgia and down the street is a Chrysler/Jeep, who used to just be Chrysler before that.
I don't know of a Chrysler/Dodge dealer nearby, most seem to combined with Jeep or solo.
That being said, if they do pull of the model consolidation then line consolidation makes sense.
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mroverlord 6:49PM (6/02/2008)
Genesis is nothing more than Chrysler doing what NEEDS to be done. It is impossible to keep market share in an era when there are more competitors all the time. Chrysler recognizes this and is downsizing it's overall excess capacity while increasing it's overseas sales. They refer to it as "right-sizing" the company..and I think it's a good plan. What makes more sense: Having 3,000 dealers and a 3 million vehicle production capacity while losing money, or having 1,500 dealers and a 1.5 million vehicle capacity while making money??
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The Talking Hamburger 9:04PM (6/02/2008)
This is encouraging news for Chrysler. For the Big 3, an overabundance of dealers has been much more of a problem than the unions. They've got much more say on the production side--cutting models, phasing out plants, and mollifying workers for the most part.
But Ford, GM, and ChryCo can't effectively dictate the same for dealers, who have individual state franchising laws that are much tougher to work with (or around). The dealers are the ones who have been harder to keep happy by their sheer number and lobbying power. By raising the standards to sell CDJ vehicles, they'll cause the dealers to put up or shut up. Or shut down, which is what they'll need.
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Sandy 4:59PM (8/15/2008)
In northern New Jersey I know of 2 Jeep Only dealers, 6 Chrysler Only dealers and all the rest are some combination of the 2 or 3.
Frank 9:54PM (6/02/2008)
Chrysler has found a way to get rid of dealers without funning afoul of the franchise laws. I wish they didn't have to do it, but in today's climate it's necessary. If Chrysler had not been bought by Dumbler and continued what they were doing in the 90's, maybe they would be strong enough today that they would not have to consolidate like this, but now they have no choice.
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kdude 10:46PM (6/02/2008)
KHAAAN!
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Cray 11:26PM (6/02/2008)
Any dealer complaining about this plan is not looking at the big picture. In the long run the dealers will have access to sales of cars they would not normally sell, and would bring in more money from servicing all Chrysler's brands.
Its a difficult situation for the smaller dealers, but its a necessary move for the automaker to stay in the game. So with that these little dealers can help themselves to longterm growth or jump ship during these hard times.
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