DETROIT MOTOR SHOW: Jeep pulls U-turn on Range Rover rival

Fiat Chrysler Automobiles (FCA) has killed off Jeep's plans to create a rival for the full-size Range Rover only a matter of months after its boss, Mike Manley, confirmed a luxurious SUV was in the works.

Back at the beginning of October 2016 at the Paris motor show, Manley told journalists that the premium SUV would be based on an all-new car-like platform and cost within the region of $US140,000 ($A190,000).

Now those plans have been scrapped, according to FCA CEO Sergio Marchionne, who has announced that the forthcoming Wagoneer and Grand Wagoneer will, instead, be based on a cruder body-on-frame chassis.

Likely to be shared with the next Dodge RAM, the Wagoneer's move to a ladder-frame chassis is reported to bring considerable costs savings in development and boost profit margins.

The move to a separate chassis will also allow FCA to build both versions of the Wagoneer at the same Detroit factory the current Dodge RAM 1500 is made in.

Unfortunately, basing its large SUV on a pick-up architecture is likely to rob both Wagoneer models of the dynamics, ride comfort and general sophistication needed to rival cars like the Range Rover and Audi Q7.

Addressing fears from the dealer network that a Range Rover-priced SUV was out of the reach of traditional Jeep buyer, the Wagoneer is now expected to be priced at less than $100,000 (A$130,000).

Sitting above the Grand Cherokee in the line-up, the Wagoneer will be a considerably wider, taller and longer SUV offering, in some markets, seating for up to eight people thanks to its three rows of seats.

Set to be on sale by 2018, it's thought -- despite the change in underpinnings -- the new Wagoneer's styling will be similar to the images leaked at a dealer conference last year.