• Jun 2, 2008

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]



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    • 1 Second Ago
  • 15 Comments
      • 6 Years Ago
      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.
      • 6 Years Ago
      KHAAAN!
      • 6 Years Ago
      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!
      • 6 Years Ago
      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.
      • 6 Years Ago
      lets rename it Project Genocide and get it over with already.

      does the world really need Chrysler?
      • 6 Years Ago
      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.
        • 6 Years Ago
        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.
      • 6 Years Ago
      good luck
      • 6 Years Ago
      In Canada, as far as I know, all three brands have been consolidated for years. I have never come across Jeep or Dodge dealership.
      • 6 Years Ago
      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.
      • 6 Years Ago
      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
      • 6 Years Ago
      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.
      • 6 Years Ago
      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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