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The Grand Cherokee was introduced to replace the Cherokee. After a successful nine year run the Cherokee was a firm favourite. The Grand Cherokee was first released in 1993, a full ten years after American Motors Corporation (AMC) first started working on the Cherokee replacement. Development continued as Chrysler purchased AMC in 1987, making the Grand Cherokee the first Chrysler owned Jeep vehicle.
1999 saw the introduction of the second generation Grand Cherokee. A full redesign meant it shared only 127 parts with the previous version, and these were mostly small fasteners. Added horsepower and fuel economy made the new Chrysler PowerTech engines more appealing. This generation was also the first to see the introduction of their automatic 4x4 system, Quadra-Drive, which transferred torque between the axles as needed.