Jeep Cherokee Returns: Hybrid SUV to Launch in Late 2025
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Detroit, MI – August 22, 2025 – Stellantis NV announced today the highly anticipated return of the Jeep cherokee, slated for a late 2025 launch as a larger, hybrid SUV. This relaunch addresses a gap in Jeep’s lineup and signals a strategic move to regain market share in the competitive SUV segment.
Addressing a Market Void
Jeep suspended Cherokee production in 2023, relocating manufacturing from Illinois to Mexico as part of a broader restructuring plan. This left the brand without a representative in the popular compact SUV category, a segment representing approximately three million annual units in the United States.Competitors like the Toyota RAV4 and Honda CR-V have dominated this space in the interim.
The decision to revive the Cherokee reflects Jeep’s commitment to filling this void and attracting a wider customer base. According to industry analysis, the SUV market continues to demonstrate robust growth, with hybrid models gaining notable traction among consumers (U.S. Environmental Protection Agency).
A Larger, Hybrid Approach
The redesigned Cherokee will move upmarket, competing with mid-size SUVs such as the Toyota Highlander and Honda Pilot. This strategic shift aims to capture customers seeking more space and features. The initial offering will be a hybrid-electric powertrain, capitalizing on growing demand for fuel-efficient vehicles.
The 2026 Jeep Cherokee is expected to carry a starting price around $37,000, including transportation. This positions it approximately $3,000 above the base hybrid RAV4 and $4,800 below the entry-level Highlander.
Did you Know? The SUV market has seen a consistent increase in demand over the past decade,with hybrid and electric models experiencing the most rapid growth.
Key Specifications at a Glance
| Feature | Specification |
|---|---|
| launch Date | Late 2025 |
| Powertrain | Hybrid-Electric |
| Estimated Fuel Economy | 6.4 l/100 km (mixed city/highway) |
| estimated Range | Over 800 km |
| Starting Price | $37,000 (including transport) |
The Cherokee’s hybrid system is projected to deliver an estimated fuel consumption of 6.4 liters per 100 kilometers in combined city and highway driving, with a range exceeding 800 kilometers. While the SUV will be assembled in Mexico, possibly subject to tariffs on non-American components, the four-cylinder turbo engine will be manufactured in Michigan.
“We chose to introduce the hybrid version first to take advantage of the high demand for fuel-efficient vehicles, without significant price increases or the need for plug-in charging,” stated Jeep CEO Bob broderdorf.
Broader Jeep Strategy
The Cherokee’s return is part of a broader revitalization strategy for the Jeep brand. Alongside the Cherokee, Jeep is preparing updated versions of the Grand Cherokee – its best-selling model – and the premium Grand Wagoneer. Moreover, the all-new, fully electric Jeep Recon is expected to launch in 2025.
Pro Tip: Consider the total cost of ownership, including fuel efficiency and potential tax incentives, when evaluating hybrid and electric vehicle options.
what features are most important to you when choosing a new SUV? And how do you see the role of hybrid technology evolving in the automotive industry?
The Evolving SUV Landscape
The SUV market has undergone a dramatic change in recent years, driven by consumer preferences for versatility, safety, and fuel efficiency. The rise of hybrid and electric suvs reflects a growing awareness of environmental concerns and a desire for sustainable transportation options. Manufacturers are increasingly investing in advanced technologies and innovative designs to meet these evolving demands. The Jeep Cherokee’s relaunch is a testament to this trend, positioning the brand to compete effectively in a rapidly changing market.
Frequently Asked Questions about the 2026 Jeep Cherokee
- What type of engine will the 2026 Jeep Cherokee have? The 2026 Jeep Cherokee will initially launch with a hybrid-electric powertrain.
- How much will the 2026 Jeep Cherokee cost? The starting price is expected to be around $37,000, including transportation.
- Where will the Jeep Cherokee be manufactured? The SUV will be assembled in Mexico, with the engine produced in Michigan.
- What is the estimated fuel economy of the new Cherokee? It’s estimated to achieve 6.4 liters per 100 kilometers in combined driving.
- When will the 2026 Jeep Cherokee be available for purchase? The launch is scheduled for late 2025.
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