Jeep to launch two-wheel drive models

The Marlboro-man of the automotive world is about to become a soccer mum. Jeep will soon have a mid-size SUV that's as affordable as a Ford Territory – by removing its heavy-duty 4WD hardware. And it's two-wheel drive models won't stop there...

Bowing to customer demand for more economical city-friendly vehicles, the rough-and-ready Jeep brand is poised to introduce two new 'city-slicker' models to conquer the urban jungle. Jeep Australia will launch two-wheel-drive versions of its flagship Grand Cherokee and compact Compass softroader in the first half of next year.

The move is at odds with the core DNA of the brand which has prided itself on its go-anywhere ability for 70 years. But the boss of Jeep Australia, Clyde Campbell, says the company must respond to the shift in customer preferences.

"Some people like the look and the functionality of 4WDs but don't need the 4WD bits," he said. "So we're giving them the option.

"There's a new group of people who are saying we like SUVs, we like the tall driving position and the big cargo area, but don't ever intend to go off-road."

In many ways the experiment has already been proven; Jeep will merely join the growing number of faux-wheel-drives. The 2WD versions of popular SUVs such as the Mazda CX-7, Toyota Kluger, Ford Territory, and Holden Captiva (among others) outsell their dearer and otherwise identical 4WD versions of the same car. But this is the first time Jeep has taken the soft option locally.

Although the new generation Compass compact SUV (which looks like a scaled-down version of the new Grand Cherokee) will arrive by the end of this year, the 2WD version of the Compass will follow in March 2012, ahead of the 2WD Grand Cherokee Laredo about June 2012.

Prices are yet to be announced. However, the 2WD Compass powered by a 2.0-litre petrol engine is expected to challenge the Japanese compact SUVs in the sub-$30,000 bracket.

The 2WD Grand Cherokee option will initially only be available on the cheapest Laredo V6 petrol variant and is expected to sell for about $3000 to $5000 less than the 4WD version, which currently starts at $50,000.

The $45,000 or so price point would be sharp enough to rival the Ford Territory and other popular family SUVs. It will also lower the big Jeep's fuel bill because the vehicle will be slightly lighter and more energy efficient without the heavy-duty 4WD hardware.

Campbell said the introduction of 2WD models would not hurt the brand's image – even though Jeep once declared that every model would always be "trail-rated", and then later retracted the statement.

"The 2WD models won't detract from the vehicles with 4WD ability. People who buy entry-level models of any product base their aspiration on the top-shelf model. We're not taking away the 4WDs, were adding a 2WD option. There will still be 4WD versions of both models."

Although Jeep has offered a number of 2WD versions of its 4WD models in North America for many years, the move is a first for Australia.

Campbell said Jeep Australia may consider adding 2WD as an option to the dearer versions of the luxury Grand Cherokee at a later date.

"As 2WD becomes more relevant to more people, why would we close our minds to that?" he said.

"We may get some substitution [purchases] and some conquest sales, but overall we'll be ahead."

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