Chrysler Consolidates 18 Dealers, Talks With 80 More
DaimlerChrysler AG's Chrysler division has consolidated Jeep, Chrysler and Dodge brands at 18 U.S. urban dealerships and is in talks with 80 more in an effort to boost sales at each outlet and discourage them from selling
rivals' vehicles, according to Bloomberg News.
Chrysler wants to combine as many as 1,000 of its 4,259 franchises into 500 outlets, Gary Dilts, senior vice president of sales, told Bloomberg News in an interview. Chrysler began the voluntary plan for urban dealers last year. The dealerships agree not to sell rivals' vehicles at those locations.
The third-biggest U.S. automaker is trying to increase sales of cars and trucks by 1 million units annually by 2011 under a plan to spend $30 billion in the next five years on new and updated models, CEO Dieter Zetsche has said.
Combining dealers will help that effort as the retailers focus on Chrysler's brands, Dilts said, according to Bloomberg News.
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