Jeep Unveils New Cherokee SUV, Confirms Hybrid Model Amid Brand Revamp

Jeep has officially revealed the first details and image of its next-generation Cherokee SUV, signaling a fresh push to revive the brand’s lagging U.S. sales. The new midsize model, expected to arrive later this year, will include a hybrid powertrain option, a strategic move aimed at aligning with market demands and Jeep’s electrification goals.

While the company has yet to specify whether the new Cherokee will feature a traditional hybrid or a plug-in hybrid (PHEV), it confirmed that efficiency and innovation are central to the vehicle’s design. Jeep already offers PHEV versions in several models, including the Grand Cherokee 4xe and Wrangler 4xe.

“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. “It will strike at the heart of the midsize SUV market, sitting between the Compass and Grand Cherokee with competitive pricing and a value-driven feature set.”

The new Cherokee arrives at a crucial time for Jeep. The brand has experienced six consecutive years of U.S. sales declines, including a 10% drop through the first quarter of 2025. The discontinuation of the previous Cherokee model in early 2023, along with the compact Renegade, left a noticeable gap in Jeep’s portfolio.

Affordability remains a pressing concern. The last Cherokee started at around $30,000, a figure that placed it in close proximity to both the Compass and the base Grand Cherokee. Jeep says the new model will target mainstream buyers with aggressive pricing, though exact figures have not yet been released.

Jeep has not confirmed where the new Cherokee will be produced. However, industry analysts and labor officials suggest it will be assembled in Mexico, a decision reportedly made before President Donald Trump’s return to office and the imposition of new 25% tariffs on imported vehicles. The previous generation of the Cherokee was built at a plant in Illinois, which has remained idle since early 2023.

The reintroduction of the Cherokee comes as parent company Stellantis reconfigures its U.S. strategy under new Americas chief Antonio Filosa, who previously led Jeep's turnaround efforts. Analysts expect the new Cherokee to serve as a litmus test for the brand’s ability to reclaim momentum in a fiercely competitive SUV market.

With growing consumer demand for hybrid and electric options, and rising scrutiny over vehicle pricing, Jeep’s latest move will be closely watched by both industry insiders and loyal customers.