Big Jeep SUVs find room to grow

The Jeep Wagoneer and Grand Wagoneer came to market last fall as the adventure brand's largest models to date.

But Jeep believes it can go even bigger, with extended versions of the plush SUVs that vie directly with the Cadillac Escalade ESV, Chevrolet Suburban, GMC Yukon XL and Lincoln Navigator L.

Doug Moreland, who owns Fort Collins Jeep in Colorado and several other Stellantis stores in Nevada and Wyoming, says the two sizes of Wagoneers and Grand Wagoneers will appeal to different customers.

"Out here, there are a lot of Suburbans, Denali XLs," Moreland said of the Colorado market. "People drive them because they love that extra room in the back. They haul stuff up in the mountains: skis, camping gear."

A spy photographer spotted one of lengthened Jeeps, covered in camouflage, during a road test in the Detroit area last month. The models are expected to reach the market later this year, according to Dave Kelleher, 2021 chairman of the Stellantis National Dealer Council. A Jeep official declined to comment about the brand's future product plans.

Ivan Drury, senior manager of insights for Edmunds, thinks Jeep is smart to expand the Wagoneer lineup quickly because of the uncertain future for internal combustion engines. Plus, he said, the demand is there.

"You've got to make hay while the sun is shining because there is limited time on how long these ICE motors are going to be around, how much people's appetites for humongous SUVs will live on — and it's not going to be forever," Drury told Automotive News. "You'll probably have to transition these things over to EV at some point, but as it stands, the market is just on fire. This vehicle type is seen as the crown jewel almost for every automaker."

While midsize crossovers get the job done for many customers, Drury said there are still enough shoppers who need the extra space of a longer-wheelbase, three-row model. The extended Wagoneer is considerably bigger than the current models, which are nearly 18 feet long.

Big SUVs these days, Drury said, are almost serving as halo vehicles.

"Taking that wheelbase out even longer just lets someone make it even more comfortable, and really, at that point, your ego's coming into play a little bit when you're buying one of these," Drury said. "People do enjoy having the biggest and the best, and even if it's most expensive, some people like that, too."

Sam Fiorani, vice president of vehicle forecasting at AutoForecast Solutions, said large utility vehicles are "huge profit centers," and that Jeep's customers are among the wealthiest out there.

"By moving the product lineup further up the price scale, Stellantis has the opportunity to make even more money," he said in an email. "With so many components shared with existing models, the Wagoneer and Grand Wagoneer bring with them the chance for enormous return on investment."

Kelleher welcomes the additions to the Wagoneer family. "As far as competition, I think we're going to stack up really well," said Kelleher, who owns David Dodge-Chrysler-Jeep-Ram in Glen Mills, Pa. "If I was Escalade or Suburban, I'd be concerned about my share."

Kelleher predicts the bigger Jeeps will be priced 10 to 15 percent higher than the standard Wagoneer and Grand Wagoneer. A fully loaded Grand Wagoneer Series III already tops $112,000.

Kelleher said many Grand Wagoneer buyers at his store have been opting for the higher trims.

"I just think it's exciting," he said. "Based on what we've seen as the early customer sentiment on Wagoneer, the fact that we will now be able to complement it with the extended version and cover all the customers in that segment [is] terrific, and I can't wait for it."

Fiorani said a long-wheelbase variant can add tens of thousands in profit. Even if the net gain is only 10,000 vehicles, that creates the potential for more than $100 million in extra profit from one body style, he said.

Jeep started shipping its newest nameplates to dealerships in September, selling 5,350 Wagoneers in the U.S. and 2,675 Grand Wagoneers by the end of 2021.

"Jeep brings a different, more rugged upscale image than Cadillac does," Fiorani said. "Potential buyers have been buying another brand's large SUV to place alongside the Grand Cherokee or Wrangler already in their garage. The addition of the long- wheelbase Grand Wagoneer gives Jeep dealers the chance to keep those sales in house."

Launching the elongated variants also gives Jeep more reason to continue promoting its revival of the Wagoneer and Grand Wagoneer nameplates over the next year, Fiorani said, "which will keep the news fresh and buyers interested over a longer time frame."