Chrysler to Consolidate Chrysler/Plymouth and Jeep/Eagle Operations

08/26/96

Reuters reported that Chrysler Corporation will combine the internal operations of its Chrysler/Plymouth and Jeep/Eagle divisions. The carmaker's decision, which it announced on Friday, forms part of a long-term effort to streamline its marketing operations.

Chrysler spokeswoman Terri Houtman said that any reduction in the company's marketing staffs stemming from the consolidation will be handled through a previously announced early retirement incentive offer to 1,200 U.S. and Canadian salaried employees. In order to cover the costs of the early retirements, Chrysler will take a $50 million to $100 million pre-tax charge against third-quarter earnings.

Houtman labeled the changes "a complete, top-to-bottom reorganization" that also includes the automaker's Dodge division. The changes aim, in part, to improve the focus of the automaker's four major brands--Chrysler, Plymouth, Jeep and Eagle--and are compatible with the automaker's dealership consolidation effort. Some brand functions will remain separate, however, and the company hopes that most of the changes will be invisible to consumers.

Chrysler began to combine its Chrysler/Plymouth and Jeep/Eagle dealerships in 1991, under a plan called Project 2000. Currently, about half of the dealers selling one of those brands offer them both.

The automaker named Dodge division General Manager Martin Levine as general manager of the combined Chrysler/Plymouth and Jeep/Eagle unit. Former Chrysler/Plymouth general manager Ray Fisher will lead Dodge car and truck operations. Former Jeep/Eagle general manager Edwin Brust will be appointed to a new position, to be announced separately.

Paul Dever -- The Auto Channel