Chrysler: Dealers Dealing News

Nothing leaks more than a nationwide network of independent business partners, particularly when they've been unhappy for a few years, and finally have a little encouraging news.

Last week, the new Nardelli-Press-led Chrysler shared its early thinking at a gathering of Chrysler dealers in Las Vegas. A few days later, stories from the WSJ and Detroit Free Press are predicting imminent announcements that Chrysler will begin culling its product line and consolidating its dealer network.

The timing of the stories, clearly courtesy of gabbing dealers, may hurt Chrysler. Last week, Jack Flack's Rescue Memo congratulated Nardelli on securing an agreement with the UAW that allowed Chrysler to kill jobs when it killed models. That condition was critical, given that auto industry smarties have been calling for Chrysler to fix the fact that its product portfolio has way too much overlap, often with uninspiring entries. As the Chrysler workers only begin voting on the contract's ratification today, such reports will likely raise the specter that the deal does indeed have different implications from the agreement with GM.

Jack Flack always counsels that if you say something to your network of independent dealers or distributors today, then you should plan on reading it in the newspapers tomorrow.