Chrysler to trim models, jettison some dealerships

SAN FRANCISCO - Chrysler L.L.C. president Jim Press said yesterday the automaker's rejuvenation plan could include jettisoning some dealerships and cutting the company's product lineup by as much as half.

Press, speaking to industry executives at the J.D. Power & Associates Automotive Roundtable in San Francisco, said Chrysler's management team had not yet decided on the severity of the cutbacks. Chrysler needs to pare down its lineup so similar models don't compete against each other, a change that would save marketing expenses and help dealers become more profitable, Press said.

The consolidation, under a plan called Project Genesis to align the Chrysler, Jeep and Dodge brands under one roof, should occur within four or five years, he said.

"There are no numbers. We don't know how many models we're going to have. No one knows that," he said.

A Chrysler dealer in Texas said yesterday that the automaker had told dealers it could cut its models by as much as a half and reduce the dealerships by as much as one-third in an effort to boost efficiency.

"I think they're trying to get a little leaner, a little more efficient," said the dealer, Alan Helfman, vice president of River Oaks Chrysler Jeep in Houston.

Chrysler is undergoing a restructuring after private equity firm Cerberus Capital Management L.P. bought a majority stake in the automaker in the summer. In November, the automaker said it planned to cut up to 11,000 jobs, including 8,000 to 10,000 hourly jobs and 1,000 salaried positions.

The cuts came in addition to 13,000 cuts Chrysler announced last February, including 11,000 hourly jobs and 2,000 salaried workers in the United States and Canada.

Press also called rumors that the company might sell off parts of its business "hogwash" and said Chrysler was committed to staying viable as an independent company.

"Our company, our owners, have said nothing to me but build an American icon . . . there's no plan to take it apart."