Chrysler Unveils 2011 Jeep Grand Cherokee as Part of Viability Plan

Pushing for a bailout

2008 Jeep Grand Cherokee

Chrysler has a lot on the line as it unveils its 2011 Jeep Grand Cherokee. Unless the company can reorganize debt, win labor concessions and form a partnership with Turin, Italy-based Fiat before May, the U.S. president has said he will allow the company to go bankrupt.

More efficient vehicles

Besides the specific requirements the government has outlined in order for Chrysler to receive bailout money, it has also put pressure on the company to make more fuel-efficient vehicles. Chrysler touted the 2011 Jeep Grand Cherokee in its recovery plan for its improved gas mileage.

The mid-size SUV gets up to 23 mpg.The company hasn’t revealed the price of the new model, but average consumers probably will need personal loans in order to afford them. Previous Jeep Grand Cherokee models have sold for $30,000 to $45,000.

Big car, big promotion

In its viability plan, Chrysler said the 2011 Jeep Grand Cherokee would be one of the “most successful, most iconic” models yet. The viability plan was submitted to the government in February.

“It’s a critical, core product that has to be done right,” said Stephanie Brinley, an analyst at Autopacific Inc. “You can’t mess up a Wrangler and you can’t mess up a Grand Cherokee. They are too important to Chrysler.”

Aaron Bragman, a product analyst with IHS Global Insight Inc., doesn’t think the new Grand Cherokee is messed up.

“It’s remarkable in terms of the progress they’ve made, especially on interiors. They are trying to move Grand Cherokee upscale. The interior on this Grand Cherokee looks like you could have lifted it from an Audi,” Bragman said.

More work to do

2007 Fiat 500

Chrysler must reach a deal with Fiat by the end of the month, President Barack Obama says. Otherwise, the company will be allowed to go bankrupt and will be sold off in pieces.

Chrysler Vice Chairman Jim Press said the end-of-the-month deadline gives the company plenty of time to strike a deal with Fiat.

Signs of partnership

Press showed up to the unveiling of the 2011 Jeep Grand Cherokee, at the New York International Auto Show, driving a Fiat. Press says Chrysler has had “nothing but good news” this month. If the companies reach an agreement, Chrysler will get $6 billion in bailout funds from the federal government.