The Jeep Cherokee is back—and it’s bringing a major upgrade with it. Jeep has revealed the first look at its all-new Cherokee SUV, and for the first time, the iconic vehicle will be available with a hybrid powertrain. While the company hasn’t confirmed whether it will be a traditional hybrid or a plug-in hybrid (PHEV), the move signals Jeep’s push toward cleaner, more efficient options without giving up its rugged appeal.
The new Cherokee is expected to arrive later this year, and Jeep is counting on it to help turn the brand around after several years of declining sales. This fresh start, powered in part by hybrid technology, could be exactly what the brand needs to reconnect with drivers looking for capability and fuel savings in one package.
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Sized to fit, priced to compete
Jeep says the new Cherokee will land right between the smaller Compass and the larger Grand Cherokee. That makes it a true midsize SUV, aiming directly at the heart of the SUV market. The brand promises “competitive pricing,” which is good news if you’ve been put off by rising costs in recent years.
To give you an idea, the 2022 Cherokee started around $30,000, not far off from the current Compass at about $27,000. Meanwhile, the larger Grand Cherokee kicks off at roughly $36,500. Jeep hasn’t released exact pricing for the new Cherokee yet, but the company says it’s designed to offer more value, more options, and more features than ever before.
A new chapter in a new location
While Jeep hasn’t officially announced where the new Cherokee will be built, industry experts and union officials say production is likely to take place in Mexico. That decision was made years ago, before the most recent shifts in U.S. trade policies and automotive tariffs. The previous version of the Cherokee was built in Illinois, but that plant has been idle since the model was discontinued in early 2023 due to cost-cutting and manufacturing shifts.
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Aiming to reclaim lost ground
The Cherokee’s disappearance—and the recent cancellation of the Renegade—left a gap in Jeep’s lineup that competitors quickly moved to fill. These decisions have been a big factor in Jeep’s ongoing sales slide, with the brand now logging six straight years of U.S. sales declines, including a 10% dip in just the first quarter of this year.
That’s why the return of the Cherokee is such a big deal. It’s more than just a new vehicle—it’s a symbol of Jeep’s effort to get back on track. With incoming Stellantis CEO Antonio Filosa, who previously led Jeep’s turnaround efforts, this new launch could be the spark the brand has been waiting for.
Expect to hear more details, including final specs and pricing, closer to the vehicle’s release later this year.
