With its new Jeep Grand Cherokee, Fiat SpA faces a challenge that has bedeviled all of Jeep's previous corporate masters: how to appeal to mainstream drivers without alienating off-road enthusiasts.
Fiat, which acquired Jeep after taking a controlling stake in Chrysler Group last year, wants to make the brand sufficiently middle-of-the-road to sell 800,000 vehicles a year worldwide by 2014, up 61 percent from 2008.
The 2011 Grand Cherokee, which began shipping yesterday, features luxury touches -- leather seats, interior wood trim -- and can drive in 20 inches of water without stalling.
"The Grand Cherokee is a sign we're moving toward a broader appeal," Mike Manley, head of the Jeep brand and Chrysler's international operations, said in an interview.
The redesigned Jeep is the first major new model Chrysler has introduced since Fiat took control and is crucial to the Auburn Hills, Michigan-based company's turnaround plans.
"Jeep is arguably one of the most important brands for the company because of its global appeal, and Grand Cherokee is the Jeep that makes them the most money," said Rebecca Lindland, an analyst at IHS Global Insight Inc. in Lexington, Massachusetts. "This is a company that is coming out of a major surgery and every setback is a threat to survival. This is really, really important that they get it right."
Frustrated
The new Grand Cherokee has 4 inches of extra leg room in the rear and 17 percent more cargo space than the previous version, which was last redesigned for the 2005 model year. The vehicle has onboard television and converts into a Wi-Fi hot spot. It starts at $30,995, about $500 cheaper than its predecessor. The priciest version costs $42,995.
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