Chrysler joins, cuts 196 dealerships

Chrysler LLC trimmed 196 dealers from its ranks nationwide in the past 12 months, while at the same time adding 70 "Genesis" stores, which sell all three of the automaker's brands.

Those numbers show the Auburn Hills automaker is making progress toward its goals of cutting the number of dealerships and selling all of its vehicles through a single channel. Most of the three-brand stores came from combining Chrysler-Jeep and Dodge dealerships. In the past five months, 37 Genesis stores have opened across the country.

Falling vehicle sales and Chrysler's shrinking product lineup is sparking further consolidation, said Steven Landry, Chrysler executive vice president for North American sales. Slimmer profit margins are causing some dealers to exit the business, while others are looking to add brands so they can maintain or increase their volumes.

Chrysler had 3,488 dealers at the end of May; 58 percent were Genesis shops — that's up from 52 percent a year ago.