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DaimlerChrysler Plans to Consolidate Dodge, Chrysler-Jeep Stores Under One Roof

by Staff
September 24, 2001
2 min to read


DaimlerChrysler AG's Chrysler Group, concerned about sluggish sales in some fast-growing markets, is launching a drive to combine

Dodge and Chrysler-Jeep dealerships into new consolidated stores, according to the Wall Street Journal.

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The company is rolling out the effort, dubbed Project Alpha, to dealers in meetings across the country this month. The push reverses a long-standing policy at the company that barred its Dodge-brand cars and trucks from being

sold under the same roof as its Chrysler- and Jeep-brand vehicles.


The company has concluded that policy must change because in some high-growth cities dealerships aren't selling enough vehicles to generate enough profit amid increasing competition from Japanese and Korean brands. Vehicle sales "at our new-vehicle dealerships is not as high as we want it to be," said

Steven Landry, the Chrysler Group's vice president for dealer operations.


In some of those fast-growing areas, dealer locations chosen many years ago no longer are considered prime. Yet the costs of buying new land and building new stores at more-desirable sites have risen so high that it makes more

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sense to build a single consolidated dealership rather than two separate ones, according to company officials.


Company officials said they had not set a deadline for the consolidations or an exact number of Dodge dealerships that they wanted to merge with a Chrysler-Jeep store.


They also said the company would not bankroll the consolidations; dealers who volunteered for Project Alpha would have to foot the bill themselves, according to published reports.

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