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Chrysler dealer ultimatum: no full line without Genesis

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Chrysler dealer ultimatum: no full line without Genesis

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The recently announced Project Genesis aims to put Chrysler's house back in order by chopping models and combining dealerships. Streamlining the entire business, from top to bottom, is the basic goal. To that end, dealerships will have to get with the program or face going without a full line of vehicles, according to Chrysler LLC co-President Jim Press.

Cutbacks in the model lines of Chrysler's component brands, rather than intentional short-changing, is the underlying reason for the company's ultimatum. Because Chrysler will be reducing its number of badge-engineered vehicles, failing to carry all three lines under one roof means that some portions of the market will not be covered.

Higher throughput and profit are the motivating factors behind Project Genesis, and reducing capacity and shrinking its dealer network are part of that plan. Chrysler has not yet given specific numbers or goals, but instead is viewing the project as a nationwide goal, according to Automotive News. But dealerships and brand structures aren't the only things going under the knife.

Chrysler's vehicle lineup is due for some paring down as well. Jim Press expressed concern that the company is competing with itself, saying "Do we need 11 SUVs? Maybe we just need three or four."

The new Project Genesis is actually the successor to Project Alpha, which has already complete 250 dealer combinations and cut the fat from the corporate body down from 4,000 stores to just 3,600. For more on Project Genesis, read our original coverage.