Jeep has unveiled the new Cherokee SUV, aiming to revitalize the brand as it prepares for a release later this year. The midsize SUV will offer a hybrid powertrain option, though specifics on whether it will be a traditional hybrid or plug-in hybrid have not been disclosed. Jeep’s CEO, Bob Broderdorf, highlighted that the new Cherokee is a key part of their strategy to enhance product offerings, innovation, and customer choice at competitive pricing, bridging the gap between the Jeep Compass and Jeep Grand Cherokee.
Affordability has been a significant challenge for Jeep, with the previous Cherokee model starting at around $30,000 in 2022, which is not far from the entry-level Compass at approximately $27,000. The Grand Cherokee begins around $36,500. The company has not provided details on the production location for the new model, though analysts suggest it will be manufactured in Mexico. This location choice was made before the Trump administration’s tariffs on imported vehicles, which currently stand at 25%.
The previous Cherokee generation was built in Illinois, but that plant was idled following the model’s discontinuation in early 2023, part of broader cost-cutting measures. The discontinuation of the Cherokee and the smaller Renegade model has contributed to ongoing sales declines for Jeep, which has seen six consecutive years of reduced U.S. annual sales, including a 10% drop in the first quarter of this year. As Jeep’s focus is expected to be a priority for incoming Stellantis CEO Antonio Filosa, he previously led Jeep’s turnaround efforts before his promotion to oversee the Americas region.
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