Automotive News - February 11, 2008 - (Page Cover1) autonews.com ® FEBRUARY 11, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY Chrysler plan: Advice — but no help on price 1,700 metro stores are targets of new consolidation push Bradford Wernle bwernle@crain.com Chrysler to reshape product lineup dramatically Story on page 84. Chrysler’s Jim Press: “Do we need 11 SUVs?” “We have to be clear that we don’t have a big checkbook,” said Chrysler co-President Jim Press. In many metro areas, Chrysler’s network has grown into a crazyquilt of single-brand stores packed too close together. The company’s new owners are eager to do something about that. Under Project Genesis, the new Chrysler LLC’s aggressive new strategy for shrinking its retail network won’t give dealers the thing they would most like to see: money to lubricate consolidation deals that have been stalled. consolidation strategy, Chrysler wants a smaller and more profitable dealer network. Part of the plan is to reshape the product lineup dramatically to end duplication among the three Chrysler brands. That would allow more retailers to sell all three brands under one roof. Chrysler has 3,600 dealers, and the plan targets about 1,700 stores in metro markets, says Michael Yatsko, director of dealer operations for Chrysler. Teams of advisers have begun fan- ning out to help dealers arrange to buy or sell stores. Dealers will be offered help with all aspects of business planning, including tax consequences, real estate, finance and estate planning. Some advisers will come from Chrysler’s majority owner, Cerberus Capital Management. In an interview last week, Press said Chrysler hasn’t ruled out offering money. But he said: “We’re not in the see CHRYSLER, Page 84 The Chevrolet Traverse: A hit JASON SAKURAI DANIEL CARDIFF/ISTOCKPHOTO In Chicago, our finicky critic saw a lot that he liked. | PAGE 1 | More Chicago coverage | PAGES 58, 82 | NADA convention Big business by the bay As NADA members gather in San Francisco, look for our daily convention issues on-site, as well as stories and pictures at www.autonews.com/nada. Meanwhile, in this issue, check out these stories on important dealer topics: An Automotive News survey of dealers finds more gloom this year than last year about prospects for profits and newvehicle sales. | PAGE 30 | Many dealers are placing greater emphasis this year on usedvehicle sales. The biggest U.S. Lexus dealership has a new, stand-alone used-car store. | PAGES 24, 83 | ALFREDO MILLAN Bill Heard Enterprises sells more Chevrolets than anyone. But it generates a ton of complaints. | PAGES 52-56 | Bill Heard, right, gets an award from GM CEO Rick Wagoner in 2004. Mazda won truck of the year honors with its CX-9. So Mazda’s Robert Davis had to deliver on an offbeat promise. | PAGE 32 | Chamco Chairman Bill Pollack plans to sell two Chinese vehicles in the United States next year, with 75 dealers. “We are clearly making progress,” he says. But there are some skeptics. Chamco cooked up a plan with an NEWSPAPER Mitsubishi is passing the quarter-century mark in the United States, and 10 dealers have been with the company all the way. Meet some of them. | PAGE 28 | San Francisco Toyota dealer Doug Donnellan has a small, cramped dealership, but he sells more Scions than anyone else in northern California. | PAGE 34 | international flavor: A Mexican plant would build Chinese vehicles for the United States. But the deal tanked, and Chamco is scrambling to figure out Plan B. | PAGES 46-50 | http://autonews.com http://www.autonews.com/nada
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