CHELSEA, Mich. – Jim Morrison smiles as he hears the piercing noise of rocks scraping the undercarriage of the Jeep he’s driving.
“The most important thing for us at Jeep is to prove our capability,” he says scaling a rock hill at a proving ground for Stellantis, Jeep’s parent company. “That’s what took us a bit longer than everybody else. It had to be a true Jeep first.”
The vehicle Morrison, vice president of Jeep’s North American operations, is driving is the 2021 Grand Cherokee L. It’s a new model for the brand that’s scheduled to arrive in showrooms next week as Jeep’s first three-row vehicle in more than a decade.
By expanding the Grand Cherokee from a two-row to three-row SUV, Jeep is seeking to attract new buyers and retain current owners who previously had to leave the brand if they wanted a bigger vehicle. It’s a key growth area for the brand amid an influx of new competitors such as the well-received Kia Telluride and Hyundai Palisade SUVs.
Jeep is an SUV legend facing a lot more competition
“It’s going to really help us grow the top-end of the business , which is good to attract new customers,” Morrison said, adding the Grand Cherokee already has a customer loyalty rate of nearly 50%.“That’s good for the profitability of the company.”
Higher profits
Average pricing for the Grand Cherokee is always near the top of the midsize SUV segment against many vehicles with three rows, according to data from Cox Automotive.
Adding the Grand Cherokee L will push the SUV’s average pricing and profits even higher, according to Matt Degen, an editor with the automotive data and insights company.
“They’ve needed this vehicle,” he said. “Making the Grand Cherokee a three-row SUV is really a no brainer for the brand.”
