An otherwise cozy Web chat with Chrysler's SRT boss late Thursday got uncomfortable when the subject of the high pricing on the 2012 Jeep Grand Cherokee SRT8 was raised.
Ralph V. Gilles, president and CEO of Chrysler's SRT brand, said that the automaker plans on "decoupling" some of the features to reduce the price on the high-performance SUV.
"Grand Cherokee pricing has been sensitive," Gilles acknowledged. "We understand."
"We will look at decoupling some of the features in the future as the usual new product surge subsides," Gilles wrote. "We will start with immediately decoupling the DVD and sunroof."
He said, "This vehicle reflects the cost of some exotic hardware like active suspension, a sweet aluminum hood, real carbon parts and a set of very expensive monobloc six-piston calipers.
"The reality is low volume is getting harder to do.... The prices from our suppliers are higher than in the past. As we use more and more exotic componentry, our prices naturally creep closer to our import competitors. That said, we are still 30K-40K less then (sic) the BMW X5 and nearly 50K-70K less then (sic) the Porsche."
In an unusual rant for an executive — but one that reflected his frustration — Gilles griped that "it is already tough to build the SRT8 alongside the normal Grand out of the plant. So we get hit with a lot of low-volume management cost. The price went up on the Luxury Group which includes the leather IP and several other features which we were forced to make standard."
In other SRT news out of the Web chat, Gilles confirmed that there is no Jeep Wrangler SRT in the works — but that SRT gear, such as T-shirts and caps are coming.
In response to a question about whether Dodge will get involved with ALMS racing, Gilles said that "we are in discussion with the organizers."
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