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13/11/09 at 01:32pm GMT+1
Automotive News
All dealerships will have 3 brands by 2011 (US)
Chrysler Group plans to finish the consolidation of its dealerships into three-brand stores by the end of 2011, Peter Grady, the automaker's vice president of network development and fleet, said Wednesday.
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Posted by: AIMTP

As it consolidates its network under Project Genesis -- a process accelerated in bankruptcy this summer by the rejection of 789 dealer franchises -- Chrysler wants to dramatically increase the number of vehicles each store sells so dealers can be more profitable and financially healthy.

Grady said the average Chrysler dealership is on pace to sell 342 vehicles in 2009. The company wants to increase that to about 785 per year by 2014, he said.

With all of Chrysler's financial problems, dealers have been insufficiently capitalized to make improvements to their stores, Grady said. The company hopes that will improve.

“Only 36 percent of network has return on sales larger than 1.5 [percent], the NADA average,” he said. “We expect 60 percent of network will exceed that average by 2014.”

Despite challenging economic conditions, a number of Chrysler dealers have been investing in their buildings and franchises, Grady said.

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