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More Chrysler dealers coming

by David Zatz on

FCA appears to be trying to counter a stall in sales with 400 new dealerships in the United States, according to Automotive News’ talk with two current dealers. That’s a fairly high increase, given that the company has 2,500 dealerships now.

The industry weekly noted that the expansion is already in progress; in the Houston area, they pointed out, FCA is going from 14 to 17 dealerships.

While there are now vast stretches of land with no local dealerships, thanks to a retrenching nearly ten years ago, at least some of the new dealerships are within miles of existing ones.

The company is compensating dealers partly by cutting back on low-profit fleet sales, to increase resale value, which increases lease residuals, adding to dealers’ per-car profits.

Automotive News also reported that there were no plans to supplement the Fiat lineup further.

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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