Chrysler CEO Defends Dealership Cuts;

80 percent of Chrysler's 2,315 dealerships have been profitable which is the highest level since 2003. Chrysler's CEO Sergio Marchionne defended the controversial dealership cuts to the brand which have brought much criticism over the past year. GM, one of Chrysler's major competitors, has also been doing well since cutting dealerships and GM's Chevy brand can be serviced at a Cincinnati Chevrolet Service.

GM, Ford, and Chrysler have been doing well since they made major shifts in their business models in 2009, and GM's top vehicles can be found at a GMC Buick Dallas dealership. Even German brands like BMW, Mercedes, and Volkswagen have still been doing well in spite of a rough economy, and VW Specials offer deals on Volkswagen's newest models.

Chrysler restored a small number of dealerships in arbitration and he said that those restorations are enough to vindicate Chrysler. The purpose of reducing dealerships was to reduce inventories. A reduction of inventories allows dealerships to have a wave of new products coming in. Marchionne explained, “We have been able to restrain ourselves from stuffing the distribution channel and forcing our dealers to keep exorbitant amounts of stock. Now we're ready to receive an onslaught of products.”

One vehicle that has been selling well is the 2011 Jeep Grand Cherokee. The redesigned Grand Cherokee went on sale early in July and it is doing better than expected. Chrysler currently has orders for 70,000 of the model and may add a third shift at one of its factories in order to keep up with demand for the model. There is increased demand for both SUV and Jeep models throughout the United States for 2010 as consumer confidence in gas prices increases. Chrysler added a second shift for its workers in July due to increased demand for a Dodge seven seat crossover that is built on the Grand Cherokee platform.