Chrysler to Cut 30% of Models

Chrysler plans to cull its Chrysler, Jeep and Dodge brands by at least a third, and drastically reduce the network of 3,600 dealers selling its vehicles to reduce costs, reports the Wall Street Journal. Chrysler dropped three models last year, leaving it with about 30 product lines. The company expects to cut back to approximately six cars, six trucks and no more than six SUVs over the next few years.

Chrysler lost about $1.6 billion in 2007. "We are a 2.7 million-vehicle-a-year company, not a 4 million-a-year company," the company vice chairman told dealers in a series of meetings. Executives told dealers they have accepted the "reality" that Chrysler can't substantially increase its sales volume. (More Chrysler stories.)