Chrysler aims to condense all three brands into single dealerships
Chrysler's Project Genesis plan has been gaining traction as of late. The goal is to cut out redundant models between the Chrysler, Dodge and Jeep brands, which would also mean consolidating its entire product line into one dealership which offers all three marques. While there are some dealership owners fighting the strategy, The Detroit News reports that Chrysler already has fifty-eight percent of its dealerships offering its three brands, and its been able to cut out some smaller, less profitable sites in the process. While franchise laws prohibit Chrysler from requiring the switch, reducing its model line can have the same effect, forcing its dealers to offer the entire product catalog from the company in order to offer a full line of vehicles. As a side benefit, the automaker hopes that its dealers can upgrade their franchises, offering a modern look and high-tech features such as Wi-Fi and a cafe on site. Of course, Chrysler needs to do its part by producing some good vehicles for those dealers to offer.
[Source: The Detroit News]
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Reader Comments (Page 1 of 2)
Brett- BMW Advo 8:20AM (6/24/2008)
Maybe Dodge and Jeep in one store but Chrysler should be set aside I think.
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mike 8:44AM (6/24/2008)
You are right. If not than Chrysler brand will become like Mercury. It needs to be separate.
AC 11:09AM (6/24/2008)
Chrysler is a budget brand... right? I'm always a bit lost as to how each brand is percieved in the US. Can anyone give me a quick run-down of how they rank roughly? You know, mercury, saturn, cadillac, ford, chrysler and the rest... i'd be grateful.
Johnny 12:22PM (6/24/2008)
AC
Cerberus:
Chrysler is above Dodge. Jeep is its own
GM:
Saturn lowest, Chevy middle, Pontiac performance, Buick above, Cadillac highest. GMC trucks above chevy trucks. Hummer its own.
Ford:
Ford lowest, Mercury above, Lincoln highest. Volvo its own.
Honda:
Honda lowest, Acura above
Toyota:
Scion lowest, Toyota next, Lexus highest
Mercedes:
Smart lowest, Mercedes highest
Fiat:
Fiat lowest, Alfa above, Ferrari its own.
Soccer Mom 8:46AM (6/24/2008)
Isn't it something Canada has had for a long time?
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MemphisNET 10:11AM (6/24/2008)
I have yet to see a dealership that does not have all three brands present.
MGBYG 10:33AM (6/24/2008)
Canadians have always been offered most of Chrysler's products branded as Chryslers... like the Chrysler Daytona, etc., so there and in Europe this will be easy(ier?).
For us enthusiasts, there should be less overlap and emblem-engineering as its tough to sell the "same" car with a $10k spread on the sticker no matter the chrome geegaws...looking at you Aspen.
mroverlord 8:48AM (6/24/2008)
This can only help "C" in the long run by reducing overhead and model overlap. The hard part will be weathering the storm until they can get new, NON-Daimler products to market.
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azzo45 5:20PM (6/25/2008)
^^ "Non Daimler products"... you must be kidding right? Their biggest success were hits BECAUSE of Daimler!!!
The Chrysler 300 & Charger are Mercedes concepts given to Chrysler engineers to put into manufacturing. Add the Challenger to that as well.
Yes the Germans wanted winners like the Patriot/ Compass & Caliber. Green lighted too many SUVs (Aspen, Nitro, etc) ...but Chrysler executives needed to grow some balls & fight some of the bad decisions that were being made for them.
Guess they were sitting back enjoying the exec. bonuses that were coming from Germany
mroverlord 5:59PM (6/25/2008)
Negative - The Charger and 300 were Chrysler designs using Benz sourced parts (transmission, MDS and old E-class rear suspension).
The bloated Jeep line, rampant SUV designs, and total neglect of alternate energy vehicles is directly D-Bs fault. They fired all of Chrysler's succesful leadership, scrapped their succesful design & production programs, and forced them to adapt "German methods"..which do not work. In the end years, DB spent as little as possible in design & development to make MBs botom line look better.
Galley 8:50AM (6/24/2008)
Our Chrysler-Jeep dealer closed recently and merged with the Dodge dealer, all of three blocks away.
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stratojet 9:26AM (6/24/2008)
This is the way to go. GM and Ford will do the same (In Canada, GM has already many all-lines Dealers.
They need to kill some sick brands and at the same time not going bankrupt and paying billions of dollars to do so.
-Pontiac
-Hummer
-Saab
-Saturn
-GMC
They all have to go. Saturn is more of a problem, but again, I have witnessed a Cadillac-Saturn store in my area; nothing is impossible. Saturn is a redondant brand that never did what it was supposed to do, that is convert import buyers. It will never do it either. I has to be amalgamated to other stores:
For ex:
Saturn-Buick would make sense
Chevrolet,Cadillac, CHev trucks
It would give some oxygen to the Dealers .
Chrysler is on the right path as far as consolidation goes.
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martin 9:30AM (6/24/2008)
they've been like this in the uk since they launched a few years ago, but thats probably because its been a graduated launch not all brands at once. plus they dont sell many cars here and it wouldnt make economic sense, just like it probably doesnt even in america
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martin 9:32AM (6/24/2008)
they've been like this in the uk since they launched a few years ago, but thats probably because its been a graduated launch not all brands at once. plus they dont sell many cars here and it wouldnt make economic sense, just like it probably doesnt even in america
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iSpec 9:59AM (6/24/2008)
Chryslers issues are far great than dealership consolidation. My Sebring rental had issues that had nothing to do with where you'd buy one.
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georgejetson 10:21AM (6/24/2008)
It will take years to fix all of the damage and neglect from the Daimler years. To Cerberus's credit, they see the problems and are really pushing as hard as they can to correct them, but it's still going to take years.
Parkerman 3:42PM (6/24/2008)
They are focusing on that. Currently its called Project D... To fix the midsize vehicle problems.
mroverlord 10:13AM (6/24/2008)
Yes, and there is a pile of dead horses behind the AB shed labeled "Sebring sucks".
I think everyone is well aware the current lineup needs replacement, and they are working on it. Unfortunately you can't snap your fingers and have a new car. They haven't been Daimler free for a full year, so it will be MY2010 before you see any REAL new products. The Challenger and Ram are good releases, and hopefully they can keep that momentum up.
Once C realizes that Jeep is a niche brand and lowers it's lineup count and sales expectations it will once again be profitable. Jeep ONLY ever had 3 models before Daimler, and it always made money. When the Commander (and hopefully Compass) vanish in '09, hopefully things will look better.
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AngeloD 10:34AM (6/24/2008)
Bzzzzzttttt! FAIL!
Jeep's lineup at one time consisted of:
Wrangler
Commanche Pickup
Cherokee
Grande Cherokee
mroverlord 2:58PM (6/24/2008)
Actually, it was:
Wrangler
Comanche
Cherokee
Wagoneer
Chrylser killed the Comanche and Wagoneer, and released the Grand Cherokee. It remained only three vehicles (Wrangler, Cherokee, Grand Cherokee) until Daimler pushed to produce more Jeeps after 2000.
Today I think it should BACK to a GC, Liberty (Cherokee in the rest of the world) Wrangler series (I would add a 2dr truck version on the 4dr Unimited frame) and the Patriot. I ONLY say the Ptriot because they seem to be selling well, and honestly the current Liberty is MUCH bigger/taller than the original Cherokee, which was more Patriot in size.