Chrysler Group dealers will require lots of capital in the coming years to improve operations. The company plans to help.
Chrysler's top dealer-development executive said last week that the company wants all dealerships to sell Chrysler, Dodge, Jeep and Ram by the end of 2011. Typically, more brands mean new or bigger showrooms, more capable service departments, different signs and more employees.
Eighty percent of Chrysler's 2,366 dealerships now sell all three brands under the automaker's consolidation program, Project Genesis.
"We plan to invest over $500 million in the network over the next five years -- $120 million next year alone," said Peter Grady, vice president of dealer network development. The bulk of the money will go for "real estate, training, infrastructure upgrades and technology upgrades," said Kathy Graham, a Chrysler spokeswoman.
With the sales collapse this year, dealers have been insufficiently capitalized to improve stores, Grady said.
Making matters worse, many dealers are still struggling to get adequate financing for operations.
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