"Project Genesis" is on hold

[XDCX]

Almost a year to the day, Chrysler has reversed their plans and decided to put "Project Genesis" on hold.

A news report indicates that Chrysler does not have the funding to do any additional consolidation deals and they do not want to lose the vehicle sales associated with additional dealership closures.

In some ways, it's ironic because Chrysler started this program with the premise that they wanted fewer dealers. Well, they got their wish.

It reminds me of that old adage - "Be careful what you wish for, because you might just get it."

Here's a link to the news report: http://www.freep.com/article/2009012...ed+dealerships

[CL Pgh]

In my twisted-conspiracy-theorist mind I can't help but think this is an absolute win for Chryserberus. As dealers fall away due to the multiple factors today... they now have less liability in the courts... and this will probably close the store down of Factory assistance for dealer mergers under Gensis.

Chryserberus: Sorry guys... one of the concessions we had to make for our loan. Hope ya'll can work it on your own.

[SHACOS]

See my other post.

[XDCX]

Originally Posted by CL Pgh

In my twisted-conspiracy-theorist mind I can't help but think this is an absolute win for Chryserberus.

Originally Posted by SHACOS

See my other post.

I think you're both right.

We've already read the one quote where Landry indicated that Chrysler was happy that dealers were failing because it made their consolidation job easier.

I also think they're at the point where they're losing stores they don't want to lose. We all know that Project 2000 was a failure from a vehicle sales perspective - why should we be surprised that Project Genesis would be any different?

In the Seattle Metro Market they closed three single point Dodge stores on the same day as part of Project Genesis. Two of the points were awarded to neighboring C/J stores and one was vaporized. Sales at the two C/J stores have only increased slightly - overall it has been a net loss of sales for Chrysler.

The reality is that Chrysler cannot afford Project Genesis right now - they need every sale they can get.