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This is an archive article published on April 9, 2009

Chrysler rolls out SUV even after govt scolding

It sounds crazy: Just a week after the White House scolded Chrysler LLC for relying too much on gas guzzlers...

It sounds crazy: Just a week after the White House scolded Chrysler LLC for relying too much on gas guzzlers,the company is heading to a marquee auto show Wednesday to unveil a new SUV.

Chrysler insists the Jeep Grand Cherokee,which clocks in at 20 mpg in its two-wheel-drive version and 19 in four-wheel-drive,is a crowd favorite and a crucial part of its lineup.

This is a very important vehicle for us. Its one of the primary legs of the Chrysler stool, Chrysler spokesman Rick Deneau said. Customers have told us they want this vehicle and that it8217;s the right size.

The 2011 model is 11 percent more fuel efficient than its predecessor,powered by a cleaner and more powerful engine. Still,Chryslers decision to debut an SUV as its only new car at the New York International Auto Show seems like odd timing to say the least. On March 30,the Obama administration issued a scathing rejection of the companys survival plan and gave it 30 days to secure a merger with another automaker,most likely Italys Fiat SpA.

The White House slammed Chrysler for having a product lineup so heavily weighted with trucks and SUVs. It added that the automaker does not have enough products in the pipeline to meet an expected increase in demand for small cars.

But Chrysler is standing by the Grand Cherokee. Its profitable,recognizable and the No. 2-selling vehicle in the Jeep lineup. Grand Cherokee sales fell by almost half during the first three months of the year,but its market share has remained steady,according to Autodata Corp.

 

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