• Detroit Free-Press, Friday, February 8, 2008 12:15 PM

Chrysler may cut the number of models it sells by half as it also moves aggressively to slim down its dealer network, according to people briefed on the plans.

The Auburn Hills automaker has been working under its so-called Project Alpha to get more of its dealers to sell all three of its brands--Dodge, Chrysler and Jeep--under one roof. But Chrysler, purchased last year by private-equity firm Cerberus Capital Management, is replacing Alpha with Project Genesis to eliminate duplication in its product lineup and to be more aggressive about dealer consolidation.

A year ago, industry analyst and advisor Steve Girsky said that two-thirds of domestic-brand dealerships needed to go before the remaining stores would be as profitable as import-brand dealerships. Other experts say that eliminating as few as 20% of domestic-brand dealers would be sufficient, but that would still involve thousands of dealerships across the country.

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