Jeep readying hybrid Toyota RAV4 rival

When Jeep ended production of the Cherokee in 2023, it left one of the most significant SUV segments in the world. It’s now planning to get back into the action.

Automotive News reports confirmation from Jeep CEO Antonio Filosa at the Los Angeles motor show that a Cherokee replacement is due in 2025.

The report appears to suggest the Cherokee replacement may be a hybrid and not a plug-in hybrid (PHEV).

Jeep’s vice president of global product planning, Matthew Nyquist, told the publication in September that it was studying conventional hybrids, a powertrain type it doesn’t currently offer.

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Instead, it has a mix of powertrains. In addition to petrol-powered models, it offers a mild-hybrid version of the Compass in markets like Australia and Europe, plus plug-in hybrid versions of the Compass and Grand Cherokee locally and the Wrangler overseas.

It has also launched its first electric model, the Avenger, with more EVs to come.

“Between plug-in and HEV (hybrid), there’s quite a bit of associated cost, as we have the engine and a fairly good-sized battery within the plug-in hybrid,” Mr Nyquist told Automotive News.

“It’s a natural extrapolation to look at HEV, and specifically in markets like the US, there’s a lot of HEV in multiple segments. So, it’s definitely something we would study across all the segments to provide the right price point and the right kind of fuel economy for our buyers.”

A Cherokee replacement with hybrid power would give Jeep a rival to the likes of hybrid Toyota RAV4, Nissan X-Trail, Kia Sportage and Hyundai Tucson models.

It could also give Jeep a more affordable electrified version of its new mid-sized SUV than if it were to offer a PHEV model, as PHEVs typically carry a much larger price premium over petrol models.

Additionally, it would allow Jeep to tap into rising demand for hybrids in markets like the US and Australia.

Mr Filosa told media in June a new “mainstream” D-segment (i.e. mid-sized) SUV is in the works, and while he didn’t confirm the name he said media “could probably guess what it will be called” – hinting it would dust off the Cherokee badge.

He confirmed there will be more than one powertrain option.

“No. Not at the beginning,” said Mr Filosa when asked if the SUV would be electric-only, like the new Wagoneer S.

“We will have a few options, as we said freedom of choice, we will deliver the market a few options.”

The current Cherokee exited production in 2023, but was axed in Australia in 2022.

That ended a decades-long run for the nameplate, which debuted in 1974 and was used continuously thereafter. However, Jeep did sell two generations of Cherokee as the Liberty in North America.

In the absence of the Cherokee, Jeep has only the smaller Compass to offer, which is priced up against many mid-sized SUVs, or buyers can step up to the larger, more expensive Grand Cherokee.

In markets like Latin America and India, it also has the Commander/Meridian, which is a three-row, Compass-derived SUV.

The mid-sized SUV segment was Australia’s largest new vehicle segment in 2023, accounting for 268,480 sales, but Jeep sold just 16 Cherokees as it cleared leftover stock. Sales of the model had also dwindled in recent years.

A new mid-sized SUV could give Jeep a major shot in the arm when it comes to sales.

Its sales have been on a mostly downward trajectory in Australia since 2014, when it reached an all-time high of 30,408 sales. There was a slight uptick in 2020 and a larger one in 2021, before sales continued their decline.

MORE: Everything Jeep Cherokee