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 diminishing.
The new
Grand Cherokee, however, will have to be developed for export, 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.