Karmactive Team
Jeep has unveiled its redesigned Cherokee SUV, set to arrive in late 2025. The long-awaited model returns after a two-year absence, sporting a boxier design and marking Jeep’s entry into the hybrid SUV market segment.
The Cherokee’s comeback addresses a significant gap in Jeep’s lineup between the smaller Compass and larger Grand Cherokee. This absence has likely contributed to Jeep’s declining sales, with the brand reporting six consecutive years of U.S. sales drops and a 10% decline through the first quarter of 2025.
“The all-new Jeep Cherokee headlines our efforts to deliver more product, innovation, choice and standard content to customers than ever before,” said Jeep CEO Bob Broderdorf. He added that the Cherokee “will boast competitive pricing that strikes at the core of the largest vehicle segment.”
Design Returns to Rugged Roots
In a significant shift from its predecessor, the 2026 Cherokee adopts a more traditional Jeep appearance with squared-off styling reminiscent of earlier generations. The front end features a flatter design with angular headlights that echo the classic XJ Cherokee models sold from the 1980s through early 2000s. The roofline is more upright, reinforcing its boxy profile.
This design change appears to be a deliberate move back to Jeep’s heritage after the previous generation’s softer, more curved approach.
Hybrid Power Confirmed
Jeep has confirmed the new Cherokee will offer a “new, efficient and powerful hybrid propulsion option,” though specific details about the hybrid system remain unrevealed. The press materials hint at, but don’t confirm, whether traditional gas-powered options will also be available.
The SUV will be built on Stellantis’ STLA Large platform, which can support internal combustion engines, hybrids, and all-electric powertrains. This suggests the possibility of multiple powertrain options in the future.
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Market Position and Pricing
The Cherokee aims to compete directly in the crowded and lucrative compact SUV segment against popular rivals like the Toyota RAV4, Honda CR-V, and Chevrolet Equinox. While Jeep often refers to the Cherokee as a midsize SUV, its actual market position places it in the compact SUV category.
Industry observers expect pricing to start around $30,000, positioning it between the Compass (approximately $27,000) and Grand Cherokee (starting around $36,500).
Production Questions Remain
Jeep has not announced where the new Cherokee will be manufactured. The previous generation was built at a plant in Illinois, which has been idle since early 2023. Analysts and union officials suggest the new model may be produced in Mexico, a decision reportedly made before recent 25% tariffs on imported vehicles were implemented.
Sales Challenge
The reintroduction comes at a critical time for Jeep. The brand has struggled with declining sales, partly due to the discontinuation of both the Cherokee and smaller Renegade after the 2023 model year.
Incoming Stellantis CEO Antonio Filosa, who previously led Jeep’s turnaround efforts before his promotion to lead the Americas region last year, is expected to make the brand a priority.
With its hybrid technology and more traditional Jeep styling, the 2026 Cherokee represents an important piece in Jeep’s strategy to reverse its sales slide and reclaim market share in one of the auto industry’s most competitive segments.
