Chrysler's Project Genesis seeing results

Detroit's Big Three have come under fire lately for their lack of preparation for the CAFE regulations and rising fuel prices. But good news about the changes that are being made inside their operations is starting to issue from the carmakers, and Chrysler is among the first to show improvement with its Project Genesis.

Aging and duplicative model lines combined with inefficient sales structures have lead Chrysler to a point where it must consolidate dealerships into single, three-brand operations selling the company's pared-down model line. The program, called Project Genesis, focuses on streamlining both production, model development and sales to make the company more fit for business in today's rapidly evolving car market.

When it was first announced, Project Genesis sounded like a draconian slash-and-burn program that would leave the company selling half as many models through half as many dealerships. It turns out that the dealerships are among the biggest fans of the program, however, now that it has gone into operation, reports Automotive News.

The first two dealers to complete a Genesis deal were originally neighboring, independent dealerships. The bigger two-line store bought out the smaller one and merged operations, resulting in a 70% upswing in service and parts income.

By moving to three-brand dealerships as opposed to stand-alone Dodge, Jeep and Chrysler stores, the franchise owners can carry a full line of cars without having to find ways to sell nearly identical models to different customers. Stand-alone owners, on the other hand, will have to find a way to consolidate their stores, as the company does not plan to supply enough vehicles of any one line to sustain a dealership on its own.