It seems like every week there is a new rumor from Detroit about what Cerberus Capital Management LP has in store for its turnaround project Chrysler LLC. The latest talk surrounds thinning the dealer network and further fine tuning Chrysler's product focus. Earlier, talk focused on plans to cut models, which later turned out to be true.
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Chrysler reportedly is looking at strictly defining its three brands. The idea would be to eliminate the practice of selling a Chrysler model as a Dodge model as well. The most egregious example of overlapping products might be the Chrysler Town & Country minivan and its better known sibling the Dodge Caravan. Consequently, the rumor du jour has Chrysler exclusively selling cars, Dodge exclusively selling pickups and commercial trucks, and Jeep exclusively selling sport-utility vehicles.
With such a drastic change would come the need to thin the herd of 3,700 dealers. It would be logical that most dealers would want to offer all three brands under one roof, which currently isn't always the case. Consequently, if a Chrysler dealership crosstown from a Jeep dealership is under different ownership, the only solution for Chrysler, would be to eliminate one franchise. The speculation has begotten more rumors suggesting Chrysler would have to cull 1,000 dealers. — Matthew Wurtzel
See story from the Detroit Free Press
See story from The Wall Street Journal (subscription may be required)
See Dealscape: Nardelli to kill Chrysler products
See Dealwatch: Chrysler
