Chrysler to Cut One Third of Model Lineup

The Wall Street Journal reports, "Chrysler LLC is laying out plans to cut by a third the number of models in its product line and significantly reduce the number of dealers selling its cars, company officials told dealers in meetings recently." The company has not announced which models will be affected. The moves come as "part of a strategy to shrink the company to a level where it can generate healthy profits."

The automaker currently sells about 30 vehicles under three brands - Chrysler, Jeep, and Dodge. "In a few years, the three brands together will probably offer a total of 15 or 20 -- roughly six cars, six trucks and six sport-utility vehicles," according to "people who attended the meetings." The Detroit Free Press adds "Dealers who sell Ford, Chevrolet and Chrysler average fewer than 600 sales per store each year. Those selling Toyota, Honda or Nissan average more than 1,200." One dealership owner blamed the slow sales, in part, on competing nameplates being sold "underneath the same franchises." The AP adds, "Chrysler earlier this month said it was launching a new ad campaign that includes lower prices on 12 of its vehicles."

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