Jeep's move upscale with big SUVs a double play

NEW YORK — The Jeep Wagoneer and Grand Wagoneer demonstrated a duality in the dense chaos of Manhattan and at a secluded private estate last week that underscores the brand's quest to move upstream while retaining its adventurous spirit.

A small fleet of the hulking, upscale Grand Wagoneers started the day on the brick-paved streets of New York's trendy Meatpacking District before winding through the city's urban landscape. From there, journalists guided the burly SUVs to the countryside, where a set of the less pricey Wagoneer models confronted rocky terrain and rumbled along a tree-lined path.

It was a tale of luxury and utility in a place that has a special significance for Jeep.

The metro New York area is the largest Jeep market in the U.S., accounting for around 10 percent of its sales in the first half of this year.

The Grand Wagoneer "looks great in the city," said Mike Uhlmeyer, the chief engineer for both nameplates. "I think it has a really strong and elegant presence, and I think it fits right in. All the glass, the vertical pillars, the beauty, the elegance. I think it's right at home here."

Jeep is hoping the Wagoneer and Grand Wagoneer find plenty of homes in New York — and everywhere else for that matter — as the brand heads upmarket to joust with the Cadillac Escalade, Lincoln Navigator, GMC Yukon and others. Some experts say Jeep will have to pull a considerable number of buyers from the Escalade and Navigator camps to make this foray worth the investment.

Although luxury will be a key calling card, Jeep believes it can convert some consumers with its capability. The Wagoneer and Grand Wagoneer can tow up to 10,000 pounds, surpassing rivals.

That could help the brand win over Escalade drivers who haul horse trailers, for example. Jeep North America Vice President Jim Morrison cited a horse trailer dealer in Michigan who said he wouldn't believe how many Escalade buyers tow trailers to horse shows.

Engineers had to raise their game to concoct Jeeps worthy of six-figure price points that mix luxury and an ability to tackle whatever obstacles they encounter. Jeep CEO Christian Meunier has called the Wagoneer line an extension of the brand with a different character and flair, but engineers had to ensure that the off-road DNA was still there.

That could come in handy on ski trips, Morrison said, when the well-heeled customers Jeep is courting may need to conquer 2 feet of snow.

Riding in the passenger seat of a Grand Wagoneer in New York City, Morrison remarked that there are "lots of Suburbans and Escalades in this town" that he's looking to conquest. Houston is another hot spot for large utilities where he thinks the Wagoneer line can make inroads.

"We're finding more and more people want the combination of the best capability and the best luxury," Morrison told Automotive News. "This new Grand Wagoneer will bring new people to our dealerships, bring new people to the brand and really be a good growth opportunity for us. A lot of people that wanted this type of luxury couldn't even buy American, and we're so proud to actually have something that we can offer these customers."

The Wagoneer, with a starting price of $59,995 for the Series I, will compete in what Jeep calls the heart of the large SUV market. But the base model won't be available at launch. The lowest-priced option for early buyers will be the $69,995 Series II 4x2 model. Morrison said Jeep is prioritizing the top-end models first to meet customer demand.

The Grand Wagoneer, opening at $88,995, can top $111,000 when fully loaded. All prices include shipping.

Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, said Jeep buyers are "upscale enough to appreciate models in this price range, but finding the huge number expected will be tough."

Fiorani said buyers who grew up on the Grand Cherokee in the 1990s have financially matured to the point of wanting to drive luxury Jeep models like these. The brand has been losing these buyers to Cadillac and Lincoln and even Land Rover, Mercedes-Benz and BMW, he said.

It "sees the money generated by the other models in this space and it just makes sense to move Jeep into the mix," Fiorani said in an email. "Not only will these models appeal to American Jeep fans, but buyers in a number of export markets will find them nice additions to their fleets."

Brian Moody, executive editor at Autotrader, says there's pent-up demand for Jeep to capitalize on with the nostalgia emanating from the Wagoneer name.

"It's one of those folklore-type vehicles, a 'too-bad-they-don't-make-that-anymore' vehicle from the past that gets a certain group of buyers excited," Moody said in an email. "With the Wagoneer and Grand Wagoneer, Jeep is rounding out it's totally logical move upmarket. All the Gen Xers who loved their Wrangler but have matured and want something nicer — and notably larger — the new Wagoneers are just the ticket. And, most importantly, the Jeep badges and branding are hard to miss."