Jeep unveils the 2025 Cherokee SUV with a hybrid option, marking a significant step for the brand. This midsize SUV will launch later in 2025 and aims to attract buyers looking for more efficient and innovative vehicles. However, Jeep has not yet clarified whether the hybrid will be a traditional model or a plug-in hybrid (PHEV).
Jeep Unveils 2025 Cherokee SUV with Hybrid Option to Reverse Sales Decline
The introduction of the 2025 Cherokee hybrid SUV is a key part of Jeep’s plan to reverse six years of falling sales. Jeep’s sales dropped by 10 percent in early 2025, so the new Jeep Cherokee with hybrid powertrain is crucial for regaining market momentum.
Jeep Aims to Reverse Declining Sales
Jeep plans to use the new Cherokee to reverse its sales decline. The brand has seen sales drop steadily for six years. Jeep reported a 10 percent sales decline in the first quarter of 2025. Therefore, the company hopes this model will renew customer interest.
Positioning Between Compass and Grand Cherokee
The new Cherokee will fill the gap between the Jeep Compass and Grand Cherokee. Jeep prices it competitively to attract buyers in the U.S., the largest SUV market. Currently, the Compass starts around $27,000, while the Grand Cherokee starts at about $36,500. The previous Cherokee began near $30,000.
Production Plans and Strategy
Jeep has not yet announced where it will build the new Cherokee. However, experts and union officials expect Jeep will produce the SUV in Mexico. The company made this decision before the U.S. imposed a 25 percent import tariff on cars. Jeep produced the previous Cherokee at an Illinois plant, which closed early in 2023. The production halt of the Cherokee and Renegade contributed to Jeep’s recent sales decline.
Focus on Innovation and Affordability
Jeep promises that the new Cherokee will deliver more innovation, options, and base features than before. Moreover, the company wants to address concerns about rising SUV prices. Stellantis Americas CEO Antonio Filosa, who led Jeep’s prior turnaround, will once again work to strengthen the brand.
