Chrysler Will Reduce Dealerships

FRANKFURT, April 20, 2004; Reuters reported that DaimlerChrysler U.S. unit Chrysler wants to consolidate its dealership network, German newspaper Financial Times Deutschland reported on Tuesday. "The number of dealers should be reduced," Chrysler boss Dieter Zetsche told the FTD in an interview.

Zetsche declined to comment on how many would be closed, but he did say that the dealership consolidation should be brought about by "mergers or also acquisitions".

Chrysler has some 4,200 dealerships in the U.S.

Zetsche reiterated Chrysler's goal of posting a profit in the current year, and said this included potential one-off restructuring costs.

"We're letting ourselves be judged with the net result, and there's the clear statement that we want to close the year in positive territory," he said.

In 2003, Chrysler reported a loss of 37 million euros ($44.49 million), just missing its target of a slight profit from its operating business, but this excluded restructuring costs.

Chrysler took restructuring charges of 469 million euros last year.