Chrysler - Fiat, Project Genesis

Vixen78

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Welcome Back avid blog readers,
A many already know, Chrysler has filed for bankruptcy and just recently terminated close to 800 of their Dealerships across the USA. Here is a link of all of the Chrysler Dodge Jeep Dealers that were rejected…
List of Closed Chrysler Dealers


The actions to slash hundreds of dealers would eliminate 25% of Chrysler’s dealerships across the country and cut 14% of the company’s sales volume. These cuts will also allow Chrysler to consolidate their three brands Chrysler, Dodge and Jeep at many of the remaining dealerships. Currently, all three brands are sold at 62% of the dealerships. Once the consolidation is complete all three brands will be available at 84% of the dealerships.


In assessing Chrysler’s viability, the Treasury Department found the automaker could not survive as a stand-alone company. Chrysler had already been in discussions with Fiat about a partnership. The current plan calls for Fiat to assist Chrysler by providing engineering for small and midsized cars.


Chrysler said in its filing that dealers are not competitive enough with foreign brands. Chrysler sold an average of 303 vehicles per dealer in 2008, according to its filing. By contrast, Honda Motor Co. sold about 1,200 vehicles per dealer, while Toyota Motor Corp. sold nearly 1,300 per dealer.
Chrysler Reconstructing Plan FAQ’s


From a personal point of view, coming from a Parts Advisor in what is now called a “Tri-Branded” Dealership… Even though the Dealership I work in was safe from being terminated, we all still have a 90 day window before another closing announcement is made. By we, I mean all of those Dealers that breathed a sigh of relief on Thursday. This was just “Round 1″ of the elimination process.


The way I see it, Chrysler has said that they want all 3 brands under 1 roof as to eliminate competition amongst themselves. So how is it, there are still 5 Dealerships standing in an 8 mile radius. The franchise I work for owns 3 of the 5 in the area. I happen to work in the only Dodge Chrysler Jeep store, while the other 2 are Chrysler/Jeep. The remaining 2 Dealerships just have Dodge under their roof.



Even though it looks like Western Massachusetts lucked out in “Round 1″, I have a feeling that we’ll see at least 2 more stores closing in the near future.


I remain optimistic with the Chrysler- Fiat partnership, also known as Project Genesis. Click here to see what Chrysler has in store for 2010/2011. The New Chrysler


It’s not the “END” for Chrysler, it’s just time for something NEW!
 
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