• MSNBC, Tuesday, March 18, 2008 11:15 AM

The new owners of Chrysler LLC want to jettison hundreds of single-brand dealers, consolidating them into larger operations that sell all three company brands: Chrysler, Dodge and Jeep. The plan--similar to those under way at Ford and General Motors--could mean an exit for dealerships that have long been part of the American landscape.

Chrysler now has roughly 3,600 dealer sites nationwide, many close together and fighting for the same customers. Merging them could leave nicer and better-staffed franchises that would be more profitable.

Chrysler has said small, rural dealers won't be targeted. Most carry all three brands, have high customer satisfaction and are community pillars, says Gary Dilts, a former Chrysler executive who now heads J.D. Power's automotive group. But Steven Landry, Chrysler executive vice president of North American sales, says metro-area dealers are generally seven to nine miles apart, too close to be profitable.

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