Stellantis (owner of Chrysler Dodge Jeep Ram) $STLA ( ▲ 0.89% ) sent a memo to dealer principals around 8 a.m. today updating the limits on how many dealerships dealers can buy or own.
Driving the news: Effective Jan. 6, dealers can now acquire only one CJDR store within a rolling 12-month period, according to a dealer memo sent to CDG News.
Other ownership and control limitations:
No person or entity may own or control:
More than 10 CJDR dealerships in the United States.
More than 6 CJDR dealerships within the same Business Center.
More than 1 CJDR dealership in a Sales Locality that has 3 or fewer CDIR dealerships;
More than 2 CDJR dealerships located in a Sales Locality that has 4 or more CJDR dealerships.
No person or entity can acquire more than one CDJR store in a rolling 12-month period.
Bottom line: Even though the January update only comes with one real change to the existing policy, it seems to be a clear move to slow consolidation and keep the dealer network more balanced.
Stellantis representatives were not immediately available for comment. But this is a developing story, please check back for updates.
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