Chrysler's previous consolidation strategy, dubbed "Project Alpha," was implemented in 2004 to trim and combine dealers. All told, Chrysler was able to cut its dealer network down from 4,000 to 3,600. Not nearly enough to get outlets on par with demand. So Chrysler's co-pres, Jim Press, announced today that Project Alpha is out and Project Genesis is on the way in.

According to Automotive News, as you read this, business teams are fanning out across the U.S. to negotiate with dealerships to either buy other outlets or sell their own in an effort to pair down Chrysler's bloated sales network. The plan is to get all three of the automaker's brands – Chrysler, Dodge and Jeep – under one roof, with the possibility of creating satellite dealerships and service-only facilities in outlying areas.

But if all of Chrysler's wares are in plain sight of the public, won't that confuse consumers with all the product overlap between brands? Yes. And that's why Chrysler is looking to nix models that are badge-engineered duplicates of other vehicles offered by the automaker. So in addition to killing off the PT Cruiser, Pacifica, Crossfire and Magnum, more models are about to be cut out of the line up. We'd mention a few suggestions here, but we're sure you can come up with some of your own.

However, it's not all about the cuts. Press went on to say that Chrysler would develop new models to compete in segments that the automaker previously hasn't pursued and that even though sales outlets are going to be consolidated, Chrysler doesn't have the ability to hand out massive checks to dealerships on the chopping block.

No one can accuse Chrysler LLC's new management of lacking urgency in efforts to conserve cash, slaughter sacred cows and in so doing get the automaker spruced up for a sale.

Chrysler in early February balked at a price increase on parts made by Dearborn, Michigan-based Plastech Engineered Products Inc. Instead, Chrysler canceled its contracts, drove trucks to Plastech's plant and demanded the tooling, which it says it owns. Chrysler planned to give the tools to other suppliers.

Plastech filed for bankruptcy and the resulting shortage of injection-molded plastic parts triggered a temporary shutdown of four Chrysler assembly plants. Plastech, which has 35 plants in North America, says it owns the tooling.

While that conflict simmered, Chrysler a week later said it would cut as many as half of its 3,600 U.S. dealers by trimming the number of models it sells. Those dealers that don't agree to consolidate may end up starved of certain vehicles.

Chrysler could, for example, decide to sell minivans only through Dodge or only through Chrysler, rather than at both as it does now. The automaker also told Chrysler, Dodge and Jeep dealers not to expect much, if any, monetary help -- as General Motors Corp. gave to Oldsmobile dealers -- to cover losses when they sell or close their stores.....

Today news comes from both Chrysler and Nissan that they have signed two new OEM (Original Equipment Manufacture) deals. Back in January Nissan and Chrysler already announced that the Japanese auto maker would provide Chrysler with a derivative of its Nissan Versa sedan for the South American market.

Chrysler will build a full-size pick-up truck for Nissan with a Nissan unique design at their Saltillo Assembly Plant in Mexico. The new pick-up will complement Nissan's Frontier mid-size pick-up truck, which Nissan also supplies to Suzuki as the Equator. It stands to reason that the Dodge Ram will supply the underlying technology. Sales of the new Nissan pick-up will start in 2011.

Nissan on the other hand will produce a small car for Chrysler in Japan for the world market. The new small car will be based on 'a unique Chrysler concept and design', should be on sale by 2010 and will be built in Nissan's Oppama Plant in Japan. Which Chrysler concept will be used is unclear but there are three distinct possibilities, the recently released Chrysler EcoVoyager, the 2005 Chrysler Akino or 2006 Dodge Hornet.

Initial reports hinted at the fact that Chinese car maker Chery would build Chrysler's global small car, with Chery president Yin Tongyue and Chrysler's CEO Tom LaSorda even shaking hands on it. Whether this deal is still ongoing seems unlikely now that Nissan has stepped into the picture.

“Forging the right tactical partnerships is critical to the long-term success of Chrysler,” said Tom LaSorda, Chrysler LLC President and Vice Chairman after the signing ceremony. The global B segment counted for 19% (10 million units) of all global car sales in 2007, a very significant chunk of the pie which Chrysler is missing out on. In North America the segment is expected to grow by 32% (from 0.6 million units sold in 2007) while the industry is expected to shrink by 9% in 2008.

Carlos Tavares, Executive Vice President, Nissan Motor Company said, “This latest agreement builds on Nissan’s proven track record to deliver win-win product exchanges with multiple manufacturers around the world.”