U.S. automakers' efforts to streamline operations continue to chip away at Sacramento area new-car dealerships.

On Wednesday, Chrysler Jeep of Elk Grove said it is ceasing new-car sales as part of a consolidation buyout, but the site will remain in business as a large-scale used car lot.

Barry Unowitz, general manager of the dealership at 9501 E. Stockton Blvd., said sales of new Chrysler and Jeep vehicles would end with the close of business on Wednesday.

Even as he was closing the Chrysler-Jeep new-car side, Unowitz was ramping up the used-car lot.

"I'm getting used cars and trucks of just about every brand name there is," he said. "It's important for people to know that we're going to stay open. We're right along the highway (Highway 99) and will have probably the biggest used-car operation in the area."

Unowitz stressed that the end of the new-vehicle operation "was not the result of bad economics for us. We were literally making money, but Chrysler came to us and wanted us to help them as part of Project Genesis.

"So, we basically sold the Chrysler-Jeep franchise back to Chrysler."

Project Genesis is Chrysler LLC's name for its nationwide plan to trim the number of its dealerships in various U.S. markets and align the Chrysler, Jeep and Dodge brands under one roof.

U.S. rivals General Motors and Ford also have nationwide consolidation plans. Both have cut local dealerships this year.

Financial terms of the Chrysler Jeep of Elk Grove buyout were not disclosed, and dealership owner Carlos Hidalgo could not be reached for comment.

Curtrise Garner, spokeswoman for Auburn Hills, Mich.-based Chrysler LLC, said the automaker "plans to re- establish Chrysler Jeep Elk Grove. I can't confirm a location at this time, because contracts have not been finalized."

Officials at the local store said that their stock of new Chrysler and Jeep vehicles was being transferred to Elk Grove Dodge, operated by the Lasher Auto Group, in the Elk Grove Auto Mall.

Elk Grove Dodge officials did not comment and said they continue to sell new Dodge vehicles.

Unowitz said a name for the used-car dealership has not been chosen. The site is not part of the Elk Grove Auto Mall, which is slightly south, at the intersection of Highway 99 and Elk Grove Boulevard.

The economic downturn and tight credit have profoundly affected the auto industry in 2008, prompting not only consolidation deals but outright dealership closings. The Sacramento area has been a hot spot, with nearly a dozen new-vehicle dealerships closing this year.

This month, locally based Maita Automotive Group's Nissan dealership at 1761 Fulton Ave. moved into the vacated Maita Hyundai facilities at 2436 Auburn Blvd. Maita Hyundai closed at the end of September, part of a consolidation deal with Hyundai, which also is trying to reduce its dealerships in U.S. markets.

Hyundai's Sacramento strategy also involved Miami-based Potamkin Automotive taking over Senator Hyundai at 3655 Florin Road in Sacramento from the Senator Auto Group. The store is now Hyundai of Sacramento. Potamkin already operates Roseville Hyundai at 200 N. Sunrise Ave.

Senator Auto Group continues to operate Senator Mazda at 3801 Florin Road, which also houses a used-car lot, body shop and rental operation.

Other local closings this year include Paul Blanco Chevrolet at 3815 Florin Road, new-car sales at Senator Ford at 3801 Florin Road and Winter Volvo Lincoln Mercury at 3805 Florin Road. All three accepted consolidation buyout offers from U.S. automakers.

Great Valley Chrysler Jeep Mazda Isuzu on Fulton Avenue in Sacramento, Elk Grove Ford in the Elk Grove Auto Mall and Maita Ford Mercury in Auburn also shut down this year.

Call The Bee's Mark Glover, (916) 321-1184.