New Cherokee but Chrysler's up for sale

This is the all-new Jeep Cherokee (or Liberty, as it's known in the States) which will be going on sale later this year.

It's new from the ground up and features both a higher quality interior than the current car, and all-new suspension which, according to Jeep, "contributes to the all-new 2008 Jeep Cherokee's blend of on-road ride comfort and nimble, confidence-inspiring handling."

The design is described as being more rugged and square sided, and indeed, seems to owe more to the 'classic' Cherokee of the late eighties and early nineties than to the current round-headlight model. Only one engine is confirmed at the moment, and that's the same 3.7-litre V6 petrol as found in the current Cherokee. Presumably, when it comes to Europe (sharing components with the Dodge Nitro 4x4) it will feature the same 3.0-litre V6 diesel as found in the Grand Cherokee.

Well, we say presumably, but by the time the new Cherokee arrives on these shores, Chrysler is likely to be under new management. DamilerChrysler bosses have confirmed that they are now in official discussions with interested parties about selling off Chrysler, which posted a $1.5-billion loss last year. The slump in sales is being blamed on the US market's shift towards smaller, more economical models.

At the moment, there are three key bidders in the running for Chrysler (and its Jeep and Dodge brands). Blackstone and Cerberus are two rather sinister-sounding venture capital groups, and Cerberus apparently was one of the bidders for Aston Martin earlier this year. Also in the running is Magna-Steyr, a Canadian-owned components group which already builds all of Chrysler, Jeep and Dodge's European market models under licence. There's also a possibility of Chinese ownership, as Chrysler has recently announced a tie-up with Chery Motors to co-produce the new Dodge Hornet supermini. And don't rule out Hyundai. It has its all-new Genesis V8 rear-wheel-drive flagship model ready for launch and is known to be considering setting up a premium brand for the model, a la Lexus. But an established brand like Chrysler would sit easily on its nose (a replacement for the 300C?) and would massively expand Hyundai's production capacity and dealer networks.

But with an imcomplete model line-up, quality woes and a hefty $8-billion price tag, Chrysler may find it harder to pair up with a suitor than it might think.