Chrysler Plan Cuts Dealers, Overlapping Models

Clued-in dealers say Chrysler is considering a restructuring plan to simplify its lineup: Chrysler dealers would sell all the company’s passenger cars, Jeep dealers would carry only Jeeps and SUVs, and Dodge dealers would handle commercial trucks and pickups. The reorganization would allow Chrysler to eliminate overlapping models and cut up to 1,000 underperforming dealers, reports the Wall Street Journal. 

A formal plan is expected by year-end. In the meantime, Chrysler announced it will drop the PT Cruiser convertible, Chrysler Crossfire, Chrysler Pacifica, and Dodge Magnum from its ranks in an effort to become profitable by 2009, and will almost halve its North American hourly work force by 2010. The sweeping changes come on the heels of Cerberus Capital Management's August takeover. (More Chrysler stories.)