Two-wheel drive Grand Cherokee?

You can picture the outrage. Jeep zealots up in arms at the possibility of their favourite offroad brand bringing in an SUV that is not actually capable of heading off the bitumen.

Yet that's entirely possible -- and not least of all given the importer's aim of annexing some of the market share currently going to the Ford Territory and Toyota Kluger. Both the Ford and the Toyota are sold in 4x2 variants as well as 4x4, so why should the base-grade Grand Cherokee Laredo be left to pick up 4x4 sales only, when the majority of Territory and Kluger sales are 4x2?

"We'd be silly not to be looking at that as an option, given the growth in the 4x2 market in Australia -- particularly in the compact SUV segment," Chrysler's Senior Manager, Marketing and Corporate Communications, Dean Bonthorne, told the Carsales Network.

"We don't have any confirmation or announcement at this stage. Most of the Jeep models are available in 4x2 in America, including Grand Cherokee, so we'll just have to do the evaluation and see what's the right fit for our market."

What's right for the market might involve turning a blind eye to brand perception. Would the Jeep image prove a stumbling block for buyers choosing SUVs that can't go off road? Obviously that problem ceases to exist if you can offer such buyers a 4x2, but then there's the flip side of the argument -- the consumers for whom Jeep is  only '4x4'?

"That's something we're very mindful of..."answered Bonthorne.

"Obviously Jeep has a rich offroad history and heritage, but the brand work we've been doing of late is not just about hardcore offroading, it's not just about being stuck in the middle of nowhere climbing up mountainous terrain -- it's about the lifestyle.

"If you look at the advertising, it's the Jeep owners having fun with their friends -- out at a beach somewhere... it's not all about the heavy offroading. That's not what the Jeep brand is all about. It does have that history, it's renowned for that capability -- but there's a lot more to it than that."

One possible corporate argument against 4x2 variants would be profitability. As Bonthorne pointed out, the Grand Cherokee Laredo is already fairly price-competitive in 4x4 form, provided one takes into account the added equipment fitted to the Jeep.

"Certainly it's hard to imagine that we could offer at the moment a vehicle at a price point below 45 grand -- a vehicle such as this..."

Despite Bonthorne's assertions that the currency exchange rate between the Aussie dollar and the Greenback has little to no bearing on how the American product is priced in Australia, the landed cost of a 4x2 Grand Cherokee could possibly place it very close to that of the Kluger, which is currently subject to a much stronger yen.

"We buy our vehicles at a locked-in factory rate, so it doesn't change as the market fluctuates,"explained Bonthorne.

"It's essentially up to the finance boffins to work together and lock in a rate for a six- or 12-month period that's mutually beneficial. If the market changes sometimes we're disadvantaged, sometimes the factory's disadvantaged...

"At  this stage, the pricing that we've got on offer is not directly a reflection of the strength of the Australian dollar over the Greenback, because that would dictate that we immediately raise all of our prices if that position was to change.

"One thing [where] it does definitely help us out -- to a degree -- [is] in terms of up-speccing vehicles. That's why we not only had an attractive entry-level price point, but [were] able to offer standard equipment lists that are very impressive."

As things stand, it could be argued that the Grand Cherokee, which Chrysler wants to go head-to-head with Territory and Kluger, is effectively fighting with one hand tied behind the back while it's only available in 4x4 configuration. Most medium-segment SUVs are what might be called softroaders, Toyota's Prado being one exception and Mitsubishi's Pajero another.

For VFACTS purposes the Grand Cherokee doesn't sell in this market segment, it's considered a luxury SUV, but Chrysler hopes that the Jeep will draw in some aspirational buyers from the medium segment, in light of the Grand Cherokee Laredo's affordability. Does that then make it a niche-market contender? Bonthorne doesn't think so...

"Niche is definitely not a word that we want to use for Grand Cherokee,"he said. "Niche is probably the outgoing term of the previous model -- where we feel that it was caught between the mid-level Territory/Klugers and perhaps the Europeans. What we've got on offer here is three distinct models that have three distinct sets of competitors.

"When we talk about your Territorys and Klugers, that is referring to the Laredo at $45,000 with standard equipment lists that are very impressive.

"With Pajero -- the GLS -- that's around $60,000. Our Limited comes in at $55,000 -- or the same money for the Limited with the HEMI V8. So it's definitely not a niche [entrant], because it does have direct competitors. That's something that we're very excited about.

"That's why we've been fortunate enough to have the Overland model brought out to Australia, because it will genuinely turn the heads of people who have Euros on their shopping lists -- from the X5s, the XC90s, MLs -- and be $20,000, $30,000 cheaper, with a range of features and a driving experience that's right up there.

"So definitely not a niche [player], we're going straight at some of the biggest players in the Aussie SUV market."

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