• The New York Times , Thursday, August 14, 2008 10:33 AM

Chrysler says that it will spend $1.8 billion to convert a Detroit plant from producing traditional Jeep Grand Cherokees to making more fuel-efficient, car-based crossovers "of various sizes and dimensions" that represent an "evolution" of the older, gas-guzzling Jeep.

Chrysler did not detail what vehicles it will produce beginning in 2010, but Thomas W. LaSorda, a Chrysler vice chairman, says it is moving aggressively to bring more fuel-efficient cars to market. He confirms Chrysler has formed a venture with Nissan Motor to source a new subcompact car from the Japanese automaker. And he says the new Dodge Journey crossover is being well received by consumers.

Chrysler's sales have suffered greatly this year, slipping 23% through July. No vehicle illustrates its downturn more than the Grand Cherokee, a stylish sport utility vehicle that was an immediate hit when it arrived in 1992. In July, sales of the Grand Cherokee fell 48% and Chrysler's overall U.S. share slipped below 9%.

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