New SUV may appeal to China's fuel misers

CHRYSLER introduced its first compact sport utility vehicle in China over the weekend in Shanghai, going after customers who are seeking better fuel economy.

The imported Jeep Compass, powered by a 2.4-liter engine, sells for 249,900 yuan (US$33,320) and 289,900 yuan for the two configurations available in China, according to Ulf Ausprung, general manager of Chrysler Group (China) Sales Ltd. "Environmental pollution and fuel efficiency have been top issues," Ausprung said.

The dealer network for the Jeep brand will expand from 70 to 120 by the end of next year, officials said.

Chrysler launched its new Grand Cherokee and new Jeep Commander, two high-end SUVs, in China at the Shanghai Auto Show in April this year. These models have engine capacities up to 5.7 liters and are priced around 550,000 yuan.

"The sales have passed our expectations and will be well above thousands of units probably by next year," Ausprung said.

Most SUV makers have rolled out smaller-engine models, fearing that rising gas prices will hurt market demand.

The Jeep Compass will take on Honda's CR-V and Hyundai's Tucson in China's high-end compact SUV market segment. The market targets drivers who pay more attention to fuel efficiency than off-road functions.

The car maker is speeding up the introduction of more models in China, one of its most important markets, particularly for passenger cars.

It plans to produce the Chrysler Sebring sedan and Dodge Caravan multi-purpose vehicle in China by the end of the year.