Condensing Chrysler

[rickaren]

Dealer shakeout in Boston sets stage for further reductions as automaker tries to cut number of stores

The plan: A renewed attempt to cut the number of dealerships to match the company's declining sales. The U.S. auto industry has shuttered dozens of factories over the years and shed tens of thousands of jobs. But dealerships have been particularly difficult to downsize, so Chrysler was stepping up its efforts.

And greater Boston is at the forefront
In Boston, the number of dealerships has gone from 23 to 14 in the past six months, according to company figures.

Chrysler has 3,521 dealerships -- down 64 from the end of 2007. According to the automaker, about 57% of the dealerships sell all three brands.

Too many dealers can lead to destructive competition among themselves and other inefficiencies. Industry experts have said 20% to 70% of domestic-brand dealerships need to be eliminated before remaining stores can be as profitable as import-brand dealerships.

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