SAN FRANCISCO — Chrysler LLC president Jim Press said the automaker’s rejuvenation plan could include jettisoning some dealers and cutting its product lineup by as much as half.
Press, speaking to industry executives Friday in San Francisco, emphasized that Chrysler’s management team has not decided the severity of the cuts. Chrysler needs to pare down its lineup so similar models don’t compete against each other, a change that will save marketing expenses and help dealers become more profitable, Press said.
The consolidation, under a plan to align the Chrysler, Jeep and Dodge brands under one roof, should occur within the next four to five years, Press said.
“There are no numbers. We don’t know how many models we’re going to have. No one knows that,” he said.
A Chrysler dealer in Texas said the automaker has told dealers it could cut its number of models by as much as half, and reduce the number of dealerships selling its cars by as much as a third in an effort to boost efficiency.
“I think they’re trying to get a little leaner, a little more efficient,” said Alan Helfman, vice president of River Oaks Chrysler Jeep in Houston.
Helfman said it looks like a good step by the company, but he’s concerned about how it might be carried out.
He said Chrysler could run into trouble with state franchise laws that in part protect dealers from being forced out of business.
Chrysler earlier this month said it was launching a new ad campaign that includes lower prices on 12 of its vehicles.
Chrysler is undergoing a restructuring after private equity firm Cerberus Capital Management LP bought a majority stake in the automaker last summer, In November, the automaker said it planned to cut up to 11,000 jobs.
The cuts came in addition to 13,000 cuts Chrysler announced last February.
Press also called rumors that the company might sell off parts of its business “hogwash” and said Chrysler is committed to staying viable as an independent company.
“Our company, our owners, have said nothing to me but build an American icon … there’s no plan to take it apart.”
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
