The Wall Street Journal, The Detroit Free Press and several other news outlets are reporting plans for big cuts at Chrysler. Cerberus Capital Management, the non-automotive firm that recently bought Chrysler from DB, is said to want to cut its network of aproox. 3,700 dealerships by 1,000. Too many dealers can lead to inefficiencies and competition among themselves for sales, but eliminating a dealership is difficult with state franchise laws giving dealers great power to resist.
In a really stupid move, they are also talking about devistating their brands. Cerberus has leaked a plan to sell cars under the Chrysler brand, trucks under Dodge and SUVs under Jeep. The Chrysler and dodge nameplates took major hits several years ago when they were moved downmarket to fill the gap left by the elimination of Plymouth.
with this kind of mismanagement, Chrysler has a bleak future. I wonder who the seventh owners of the Jeep name will be?
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