Chrysler Corp. unveiled the first complete redesign of the Jeep Grand Cherokee this week, one of the models most responsible for the sport utility vehicle craze.

Chrysler played it safe in redrawing the lines of the successful truck. While featuring an all-new chassis and drivetrain with several major refinements, the '99 version retains the familiar look of its predecessor.The entire look is more aerodynamic, less angular. The edges have become more rounded, while the grille is more raked and flanked by jewel-like headlamps, usually found only on luxury cars.

The Grand Cherokee has been a cash cow for Chrysler. The No. 3 automaker sold more than 1.3 million Grand Cherokees through last year, getting a lot of mileage out of the first generation. Since its debut in 1992, the Grand Cherokee has become a ubiquitous sight on the nation's highways.

The '99 model will face more and tougher competition, including the Mercedes-Benz M-Class in the luxury SUV market from Chrysler's new partner-to-be, Daimler-Benz AG of Germany.

Chrysler Chairman Robert Eaton suggested that he didn't consider the M-Class direct competition.

"That's a vehicle a little higher up in the market, a little higher-priced," Eaton said. "It's a slightly different customer."

The new Grand Cherokee, a midsize SUV, has the same wheelbase as the first-generation model, but is 4 inches longer, 2 inches higher and 1.5 inches wider. Chrysler says it's easier to get into the new model - step-in height was reduced an inch. And the seating position was raised an inch to give what the company calls "enhanced command-of-the-road feel."

Inside, the '99 model offers more headroom and more cargo space, with the spare tire relocated under the cargo floor. In the United States, two engines will be offered: a new 4.7-liter V-8 and the standard 4-liter in-line six.

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The '99 is scheduled to go into production at Chrysler's Jefferson North plant in Detroit at the end of July and show up at dealers in September. First-year production is set at 240,000 units, with full-year production expected to reach up to 345,000 units.

Eaton said Chrysler spent $750 million to upgrade Jefferson North for the new model.

The top U.S. sales year for the Grand Cherokee was 1996, when 279,195 were sold. Last year, sales declined 7 percent to 260,875. Grand Cherokees also are produced for export, and are manufactured in Austria.

Prices have not been announced, but spokesman Mike Rosenau said no major increase from 1998 prices is expected.

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