Chrysler Won’t Raise Grand Cherokee Price

Chrysler Corp. said base prices on its 1999 Jeep Grand Cherokees will be the same or less than on the current models, even as design changes make the sport-utility vehicle bigger, faster and more maneuverable. Buyers still will face sticker shock in the next few weeks, however. When the 1999s hit showrooms next month, they aren’t expected to have the $2,000 rebate Chrysler is offering as it phases out the current Grand Cherokee, introduced six years ago. The rebates eventually will return because of pressure from rivals and production goals, analysts said. Competition is building from newcomers such as Toyota Motor Co.’s Lexus RX300 and Daimler-Benz’s Mercedes-Benz ML320. Chrysler also expanded its Jeep assembly plant in Detroit to build 355,000 Grand Cherokees a year, an increase of 14%. The base price on the Grand Cherokee Laredo model will fall by $250 to $26,220 for two-wheel-drive models and $28,190 for four-wheel-drive models. The top-of-the-line Limited model will remain unchanged at $31,985 for two-wheel-drive models and $34,415 for four-wheel-drive models. Chrysler rose 88 cents to close at $58.25 on the NYSE.