Chrysler Plans to Reduce Product Line and Dealers

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 moves are part of a strategy to shrink the company to a level where it can generate healthy profits, people familiar with the matter said.

It is a reversal from the strategy when the auto maker was part of DaimlerChrysler AG and it aimed to nearly double sales to about four million vehicles a year by the end of the decade.

In December, Chief Executive Robert Nardelli told employees Chrysler was on track to lose about $1.6 billion last year, people familiar with the matter said.

In meetings with dealers last week and this week, Chrysler executives said they have accepted the "reality" that Chrysler can't expect to increase its sales volume substantially.

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Last Update on : February 8, 2008   

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