Chrysler’s reGenesis Means Fewer Models & Dealerships

Jeep needs a turnover as well

Former “big three” cohort Chrysler will try to dodge (pun intended) disaster by carving out about half of its models as well as decrease its network of dealerships.

Shrinking the number of dealers will be difficult, however, because of laws in all the states protecting those businesses, analysts said. If Chrysler, with about 3,600 dealers, wants to move quickly, it likely will have to offer financial incentives.

Over the years, the automaker and its U.S. rivals, General Motors Corp (NYSE: GM) and Ford Motor Co (NYSE: F), have tried to shrink their dealer numbers, often facing great resistance. However, analysts said some dealers may be more receptive now, given the weak U.S. economy, if the offers are generous.

Reuters

Forbes recently crowned five Chrysler cars as “Automotive Turkeys” on its list of 10 Poorest Performing Cars for 2007. Those models included Chrysler Sebring, Dodge Nitro, Jeep Liberty, Dodge Caliber, and Dodge Magnum. Factors included number of recalls, high depreciation, and NHTSA ratings below four stars. Not to mention they’re all ugly, so…um…that’s probably why also. In addition to the elimination of models — some of which are ineffectually duplicated and rebadged models — Project Genesis calls for the introduction of new, competitive models. The dealerships will likely be consolidated to include all three nameplates under one roof.

If I was a betting man, I’d go all in on the idea that Kirk Kerkorian and Carlos Ghosn will both be involved in preparing a gameplan that includes Chrysler LLC.

Large popcorn please…no butter.

A “fire sale” may not be enough.

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