Chrysler LLC is preparing to spend $281 million to renovate the Jefferson
North Assembly plant in Detroit where the company now builds the Jeep
Grand Cherokee and Jeep Commander. The automaker hasn't said anything
publicly at the future Grand Cherokee but privately Chrysler officials
have confirmed that the money is being spent to produce new 2011 Jeep
Grand Cherokee, starting in the summer and fall of 2010. The Jeep
Commander, which also is built at Jefferson North, will probably be
dropped as Chrysler reduces the number of models it builds as part of the
effort to right-size the company for its shrunken market share, analysts
have suggested.
While the Commander gets decommissioned, the new Grand Cherokee-one of the
Chrysler's signature vehicles-will come with an optional diesel engine
made
by Daimler AG or with an optional two-mode hybrid system, which Chrysler
has
developed jointly through a joint venture with General Motors, Daimler and
BMW, Chrysler officials indicated privately last week. In addition, the
2011
Grand Cherokee will be one of the very first vehicles engineered and
sourced
under the tough regime being installed by Chrysler's new chief executive
officer Robert Nardelli and vice chairman and president Jim Press. Both
Press and Nardelli are taking a direct role in decisions on the new Grand
Cherokee, Chrysler sources said.
Key supply contracts will be awarded in the next few months but the new
purchasing regime installed by Nardelli is having a huge impact. At the
same
time, the influence of Daimler's product development system on Chrysler
decisions is rapidly dimini****ng. The new Grand Cherokee, however, will
have
to be developed for ex****t, which probably means it is being developed for
both right and left-hand drive markets. "Developing foreign markets is a
priority for us," noted one Chrysler officials. Nardelli said back in
January that as Chrysler expands its overseas sales operations, it also
plans to do more design and engineering work in places such as China and
Eastern Europe
-- 30 --
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