Jeep Bets Drivers Will Shrug Off Gas Prices With Longer Wagoneer
Jeep Bets Drivers Will Shrug Off Gas Prices With Longer Wagoneer
(Bloomberg) -- Jeep announced plans for bigger versions of its upscale Wagoneer and Grand Wagoneer SUVs, betting there’s still demand for super-sized vehicles at a time of soaring gas prices.
The iconic American brand, owned by Stellantis NV, on Wednesday unveiled the Wagoneer L and Grand Wagoneer L, each measuring a full foot longer than their standard-wheelbase siblings. The sport utility vehicles, which offer more cargo room and extra leg space, will be exhibited this week at the New York International Auto Show.
The models will test consumers’ appetite for big, brawny combustion-engine cars at a time when much of the industry is transitioning to electric and hybrid vehicles. That shift has gained momentum lately with gas prices hovering around $4 a gallon and inflation jumping to 8.5%.
Stellantis debuted the Wagoneer and Grand Wagoneer last year to challenge rivals General Motors Co. and Ford Motor Co. in the lucrative segment of large luxury SUVs. While sales have been hampered by the chip shortage, Jeep sold more than 10,000 of the three-row SUVs in the first quarter. Detroit automakers have prioritized production of high-margin SUVs and trucks to offset a decline in volumes.
The Grand Wagoneer L will compete with the Cadillac Escalade ESV, which sold 15,147 units last year, according to Edmunds. Sales of the standard wheelbase Escalade reached 25,358.
The extended versions will have twin-turbo engines that are smaller, more powerful and consume less gas than the naturally aspirated V-8 engines in other Stellantis models, the company said in a statement.
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