Jeep has officially revealed key details and an image of its upcoming 2025 Cherokee SUV, aiming to revitalize the brand's performance in the competitive midsize SUV market. The new Cherokee is slated for release later this year and notably will include a hybrid powertrain option, signaling Jeep's commitment to innovation and expanded choice.
While Jeep confirmed the hybrid variant, the company has not specified whether this will be a traditional hybrid or a plug-in hybrid electric vehicle (PHEV). Jeep CEO Bob Broderdorf emphasized the vehicle's strategic placement within the lineup, stating, "The all-new Jeep Cherokee headlines our efforts to deliver more product, innovation, choice and standard content to customers than ever before." He added that the Cherokee will offer "competitive pricing" that bridges the gap between the Jeep Compass and Jeep Grand Cherokee models to strengthen the brand’s mainstream appeal.
Pricing has been a challenge for Jeep’s sales in recent years, as the entry-level 2022 Cherokee started near $30,000, closely priced to the current Compass starting around $27,000. The upcoming 2025 Grand Cherokee model has a starting price close to $36,500, positioning the new Cherokee to address affordability concerns within the segment.
Details such as production location remain undisclosed, but industry analysts and union representatives indicate the Cherokee is likely to be manufactured in a Mexican facility. This production decision was reportedly made before President Biden’s administration introduced new policies targeting imported vehicles into the United States. The previous generation Cherokee was produced in Illinois, in a plant currently idled following the model's discontinuation amid company cost-cutting measures.
The discontinuation of the Cherokee and the smaller Renegade SUV after the 2023 model year has contributed to Jeep’s recent sales challenges. The brand has faced six consecutive years of U.S. annual sales declines, including a 10% drop in the first quarter of 2025.
Jeep remains a pivotal focus for Stellantis’ leadership, particularly under the direction of the executive overseeing the Americas region, who was promoted last year. The company’s renewed focus on hybrid technology and competitive pricing with the new Cherokee model represents a strategic effort to reverse the downward sales trend and regain market share in the key midsize SUV segment.
