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Leftlane NewsAuto industry watchers were surprised by Chrysler's swift move to kill-off five models late last year, but there are more product eliminations and dealer reorganization on the way, said Chrysler co-President Jim Press. Called "Project Genesis," a new strategy at Chrysler calls for the aelimination of so-called "badge-engineered" vehicles, plus the consolidation of many Chrysler, Dodge, and Jeep dealerships into single stores.
Press said Chrysler's new owner, Cerberus Capital Management, realizes the automaker has too many duplicate products, and several may have to be eliminated, according to Automotive News. He didn't say what vehicles those might be, but some obvious names come to mind. The Jeep Compass, for example, has experienced slow sales compared to the Dodge Caliber on which it is based. The Dodge Avenger and Chrysler Sebring are also very similar, as are the Jeep Liberty and Dodge Nitro. It's not known if any of those products are on the chopping block.
To deal with an excessive number of unprofitable dealerships, Cerberus plans to merge several Chrysler, Dodge, and Jeep outlets into "one-roof" stores. The plan will eventually affect nearly all dealers, though Cerberus is not currently planning to put a large amount pressure on dealers to consolidate. Rather, Cerberus hopes to guide them toward mergers that would ultimately increase profitability for everyone.
In late 2007, Cerberus famously axed the Dodge Magnum, Chrysler PT Cruiser Convertible, Chrysler Pacifica, and Chrysler Crossfire. However, discontinuing cars isn't the only component to the company's product strategy, Mr. Press said. The automaker will also focus on creating new vehicles for segments in which it currently does not compete.
In other news, it took a guy from Toyota to come up with this...
Really?
I can think of quite a few dealers that are going to be pissing and moaning about this here in Grand Rapids, but simply put, it is required for the sustainability of the company.
As Cody would say:
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