Bloomberg
Feb. 9 (Bloomberg) -- Chrysler LLC is talking to other automakers about using the mechanical underpinnings of their models and putting a new exterior on them in an effort by the third-largest U.S. carmaker to cut costs.
``We are in discussions with different potential partners,'' said Chrysler President James Press in an interview today in San Francisco, where he is meeting with the National Automobile Dealers Association. He declined to name the other automakers.
Collaborations between automakers are becoming more commonplace as they try to expand globally without investing in new plants and product design. For example, Nissan Motor Corp. plans to build versions of its Frontier compact pickup in Tennessee for Suzuki Motor Corp. Suzuki, in turn, will provide minicars and other small autos to Nissan in Europe and Japan.
Auburn Hills, Michigan-based Chrysler, too, is building a minivan for Volkswagen called the Routan that will go sale later this year. Through such alliances and by reducing the number of vehicles that it makes that are similar, Chrysler is seeking to reverse two years of losses.
One Roof
Chrysler, which has 3,600 U.S. dealerships, said yesterday that it will trim the number of models and work with dealerships so that all three of its brands -- Dodge, Jeep and Chrysler --are sold under one roof in most cases.
The company is seeking partners to help develop cars that will serve customers that it's missing with its current lineup.
The dealership consolidation, product cuts and partnerships are designed to make the remaining dealerships more profitable.
Dealerships that do not consolidate will end up with ``holes'' in their lineup in four or five years, said Steven Landry, executive vice president of sales and marketing for North America.
The company will offer assistance to dealerships in the form of low- or no-interest financing and estate planning to help dealers who wish to buy or sell their dealerships to other dealers, said Landry.
Metro Areas
Chrysler is targeting major metro areas for dealership consolidation, Landry said. About 85 percent of dealerships in rural areas carry all three brands, he said.
The company will begin presenting dealership groups with maps that show how many and where combined dealerships should be. The company already has presented plans to Boston-area dealers that project 10 combined dealerships instead of the 22 dealerships of varying combinations in the market. In Detroit, there are 44 dealerships and the company would like to have 19.
John Gunning, owner of Manassas Dodge in northern Virginia, said he was told dealers would know the company's plan for their region in the next 60 days.
Feb. 9 (Bloomberg) -- Chrysler LLC is talking to other automakers about using the mechanical underpinnings of their models and putting a new exterior on them in an effort by the third-largest U.S. carmaker to cut costs.
``We are in discussions with different potential partners,'' said Chrysler President James Press in an interview today in San Francisco, where he is meeting with the National Automobile Dealers Association. He declined to name the other automakers.
Collaborations between automakers are becoming more commonplace as they try to expand globally without investing in new plants and product design. For example, Nissan Motor Corp. plans to build versions of its Frontier compact pickup in Tennessee for Suzuki Motor Corp. Suzuki, in turn, will provide minicars and other small autos to Nissan in Europe and Japan.
Auburn Hills, Michigan-based Chrysler, too, is building a minivan for Volkswagen called the Routan that will go sale later this year. Through such alliances and by reducing the number of vehicles that it makes that are similar, Chrysler is seeking to reverse two years of losses.
One Roof
Chrysler, which has 3,600 U.S. dealerships, said yesterday that it will trim the number of models and work with dealerships so that all three of its brands -- Dodge, Jeep and Chrysler --are sold under one roof in most cases.
The company is seeking partners to help develop cars that will serve customers that it's missing with its current lineup.
The dealership consolidation, product cuts and partnerships are designed to make the remaining dealerships more profitable.
Dealerships that do not consolidate will end up with ``holes'' in their lineup in four or five years, said Steven Landry, executive vice president of sales and marketing for North America.
The company will offer assistance to dealerships in the form of low- or no-interest financing and estate planning to help dealers who wish to buy or sell their dealerships to other dealers, said Landry.
Metro Areas
Chrysler is targeting major metro areas for dealership consolidation, Landry said. About 85 percent of dealerships in rural areas carry all three brands, he said.
The company will begin presenting dealership groups with maps that show how many and where combined dealerships should be. The company already has presented plans to Boston-area dealers that project 10 combined dealerships instead of the 22 dealerships of varying combinations in the market. In Detroit, there are 44 dealerships and the company would like to have 19.
John Gunning, owner of Manassas Dodge in northern Virginia, said he was told dealers would know the company's plan for their region in the next 60 days.
