Production of new Grand Cherokee to start May 3
The 2011 Jeep Grand Cherokee, the first new product from Chrysler in recent years, will go into production on May 3 and go on sale in July.
The news came in an announcement Chrysler CEO Sergio Marchionne made at the National Auotmobile Dealers Association/IHS Global Insight Forum in New York City. The new Jeep will be the first in a series of new vehicles that will see the automaker’s entire model line replaced or refreshed by 2012.
Marchionne also said he is pushing for “quality that is probably unprecedented in Chrysler.”
“It needs to be flawless – our definition of quality,” Marchionne told conference attendees in comments following a keynote speech that was marred by a protestor upset about the federal bailout of Chrysler and the cost to U.S. taxpayers. Marchionne promised the loans would be repaid but noted the government-mandated arbitration process for terminated dealers has slowed the company’s work to improve the dealer network. He added Chrysler is on track to break even on an operating basis this year and currently holds about $5 billion in cash. He also pointed out Chrysler’s break-even point is substantially lower than outsider estimates.
“To the extent that I’m producing cash and I keep on investing in the brand portfolio, I feel a lot more comfortable today than I did 12 months ago.”
