Chrysler has announced plans to cut as many as 240 of their roughly 1,200 urban dealerships, stating that the move will help it to reduce overlap and increase efficiency. As well, they may look to increase their footprint in rural areas. Overall, the plan sounds like a good idea, since there doesn't seem to be a need for a dealership next to every Starbucks. Chrysler dealers average a margin of 1.24% - said to be typical in the industry - but the car company would like to increase that to bring margins more in-line with those that sell Japanese cars.
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