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As Chrysler works to restore its model line-up, it has today announced that it will begin building the new 2011 Jeep Grand Cherokee in Detroit from May.

Chrysler CEO Sergio Marchionne said today that first sales of the new model will begin in July, and that the Chrysler Group plans to refresh or replace all of its current model line-up by the end of 2012.

Marchionne went on to say that the new model would feature "an attention to quality that is probably unprecedented in Chrysler".

The current Jeep Grand Cherokee was the brand's second highest volume seller last year, comprising 22 per cent of Jeep's total volume.

The new Grand Cherokee will be available with a choice of Chrysler's all-new 3.6-litre Pentastar V6, or existing 5.7-litre Hemi V8 petrol engines. A turbo-diesel-powered variant is also expected.

Based on a platform derived from the current Mercedes-Benz M-Class SUV, the new Grand Cherokee will be noticeably stiffer than its predecessor and will likely feature air suspension and Chrysler's Selec-Terrain transmission control system.

Pricing is expected to start at USD$30,000 (AUD$32,630).