Hybrid Cherokee : The automotive world is witnessing an extraordinary resurrection story as the iconic Jeep Cherokee prepares to make its triumphant return to global markets in late 2025.
After a three-year hiatus that left enthusiasts mourning the loss of one of America’s most beloved SUV nameplates, Jeep has confirmed the Cherokee will return with hybrid powertrain options for the first time in its storied history, though Australian consumers will unfortunately miss out on this comeback.
The Phoenix Rises: Cherokee’s Return to Form
The cancellation of the Cherokee and a smaller SUV called the Renegade after the 2023 model-year contributed to ongoing sales declines for the brand.
This strategic misstep left a gaping hole in Jeep’s lineup, particularly in what industry experts consider the hottest segment in today’s automotive market. The midsize SUV category, where vehicles like the Toyota RAV4, Honda CR-V, and Mazda CX-5 dominate, represents nearly a quarter of all new vehicle sales annually.
The announcement came with tantalizing glimpses of what promises to be a complete reinvention of the Cherokee concept. Jeep CEO Bob Broderdorf declared this “a historic year for the Jeep brand, with more product, innovation, choice and standard content for customers than ever before”.
The company released initial images showing a return to the Cherokee’s boxy, utilitarian roots—a dramatic departure from the smooth, controversial styling that characterized the recently discontinued fifth-generation model.
A Return to Heritage Design Language
The sixth-generation Cherokee, internally designated as the KM series, represents far more than a simple refresh. With styling paying homage to the XJ Cherokee – sold in Australia between 1996 and 2001 – the new generation is expected to use the STLA Large modular platform. This platform choice signals Jeep’s commitment to electrification, as it’s specifically designed to accommodate internal combustion engines, hybrid systems, and fully electric powertrains.
The visual transformation is immediately apparent in the released imagery. Gone are the polarizing split headlights and swooping curves that defined the KL generation. In their place sits a more upright, angular silhouette that deliberately echoes the legendary XJ series—the Cherokee generation that essentially created the compact SUV category and ran successfully from 1984 to 2001.
This design philosophy represents a calculated return to what made Cherokee special in the first place. The XJ Cherokee was revolutionary for its time, introducing unibody construction to the SUV world and establishing the template that countless competitors would follow. Industry observers note that the new Cherokee’s boxier proportions suggest Jeep has learned valuable lessons from recent market feedback and competitor success stories.
Hybrid Technology Takes Center Stage
Perhaps the most significant development in the Cherokee’s comeback story involves its powertrain strategy. Jeep confirmed the five-seat Cherokee SUV will be offered with a hybrid powertrain for the first time, marking a watershed moment for the nameplate’s evolution. This hybrid focus aligns perfectly with broader industry trends toward electrification and improved fuel efficiency.
The new Cherokee will initially launch with a 1.6-liter PSA Group Prince engine EP6CDTX turbo four-cylinder Hybrid drivetrain, representing a significant departure from previous Cherokee powertrains. This European-developed engine technology brings proven efficiency credentials to the Cherokee lineup, potentially addressing long-standing criticisms about fuel economy that plagued earlier generations.
The STLA Large platform’s flexibility means additional powertrain options will likely follow. Industry analysts anticipate that fully electric variants could join the lineup as the platform already underpins electric models like the Jeep Wagoneer S and upcoming Recon electric SUVs. This scalability provides Jeep with crucial flexibility to respond to evolving market demands and regulatory requirements across different global markets.
Australia’s Automotive Disappointment
While Cherokee enthusiasts worldwide celebrate the nameplate’s return, Australian consumers face a bitter disappointment. The Jeep Cherokee will return to US showrooms – but not Australian ones – after the brand confirmed production of a new generation will begin in late 2025. This exclusion represents a significant blow to Australian SUV buyers, particularly given the market’s appetite for vehicles in this segment.
The Grand Cherokee was axed in March 2025 after a significant sales slump. It means Jeep will continue to lack a product in Australia’s largest sales segment: the mid-size SUV segment. This accounted for almost a quarter of new car sales last year, with 287,637 of the total 1,237,287 total new vehicles sold.
The Australian exclusion becomes even more puzzling when considering the market’s historical relationship with the Cherokee nameplate. The previous generation KL Jeep Cherokee was sold in Australia between 2014 and 2022 with four- and six-cylinder petrol engines, before production ended globally in February 2023. Australian consumers had grown accustomed to Cherokee availability, making this exclusion particularly stinging.
Instead, the Jeep Compass – due in Australia in 2026 with electric and hybrid powertrain choices – will take up the role previously played by Cherokee in the local lineup. However, industry experts question whether the smaller Compass can adequately fill the void left by both the Cherokee and Grand Cherokee departures.
Market Context and Competitive Pressure
The Cherokee’s return comes at a critical juncture for the Jeep brand globally. Jeep has reported six consecutive years of U.S. annual sales declines, with a 10% decline through the first quarter of this year. More dramatically, Jeep sales fell 9 per cent in the US in 2024 – and a staggering 48.7 per cent in Australia – while parent company Stellantis suffered a 15 per cent global sales decline and massive 70 per cent fall in profits year-on-year.
These troubling sales figures underscore the importance of the Cherokee’s successful relaunch. The midsize SUV segment represents one of the automotive industry’s most lucrative and competitive arenas, with established players like the Toyota RAV4 consistently leading sales charts. The Cherokee faces the challenging task of reclaiming market share from competitors that have grown stronger during its absence.
Pricing strategy will prove crucial for the Cherokee’s success. Affordability has been a problem for Jeep sales amid price increases in recent years. An entry-level model of the Cherokee started around $30,000 for the 2022 model year, according to Cars.com. The new generation must balance competitive pricing with the premium positioning that hybrid technology typically commands.
The Legacy Challenge
The Cherokee nameplate carries tremendous historical weight, both positive and challenging. The XJ generation (1984-2001) remains legendary among automotive enthusiasts for its durability, capability, and pioneering design. However, subsequent generations—particularly the Liberty years and the polarizing KL generation—failed to capture the same magic that made the original Cherokee special.
The XJ Cherokee’s 18-year production run demonstrated the power of getting the formula right. Approximately 3 million were manufactured between 1983 and 2001 across multiple global facilities, establishing the Cherokee as a truly international success story. The new generation faces the daunting task of matching that legacy while addressing contemporary market demands for efficiency, technology, and safety.
One ongoing challenge involves the Cherokee name itself, which has faced criticism from the Cherokee Nation. Despite previous statements about potentially retiring the nameplate, Jeep appears committed to continuing its use, viewing the name as integral to the vehicle’s heritage and market positioning.
Future Electrification Strategy
The Cherokee’s hybrid introduction represents just the beginning of Jeep’s broader electrification journey. The automaker is also working on a new electric Renegade – a small SUV last sold in Australia in 2020 – due in US showrooms in 2027. This timeline suggests a comprehensive transformation of Jeep’s entire lineup over the coming decade.
The STLA platform’s versatility means the Cherokee can evolve with changing market conditions and regulatory requirements. As battery technology improves and charging infrastructure expands, fully electric Cherokee variants could follow the initial hybrid offerings. This flexibility provides Jeep with crucial adaptability in an rapidly changing automotive landscape.
Manufacturing and Global Strategy
Production details for the new Cherokee remain limited, though Jeep said it will begin manufacturing the new Cherokee in late 2025. The previous generation was assembled at the Belvidere Assembly Plant in Illinois, but Stellantis hasn’t confirmed whether production will return to this facility or move elsewhere.
Manufacturing location decisions will prove crucial for the Cherokee’s global competitiveness, particularly regarding pricing and regulatory compliance across different markets. The Australian exclusion suggests regional manufacturing and market strategies may differ significantly from previous Cherokee generations.
A Calculated Gamble
The Cherokee’s hybrid comeback represents both tremendous opportunity and significant risk for the Jeep brand. Success could revitalize Jeep’s position in the crucial midsize SUV segment while demonstrating the brand’s commitment to electrification and modernization. Failure, however, could further damage a nameplate that has struggled to recapture its former glory.
For automotive enthusiasts, the Cherokee’s return offers hope that iconic nameplates can successfully evolve with changing times while honoring their heritage. The emphasis on hybrid technology and traditional Cherokee design language suggests Jeep has learned from past missteps and is ready to compete seriously in today’s demanding SUV marketplace.
Unfortunately, Australian consumers will have to watch this resurrection story unfold from afar, left to wonder what might have been had Stellantis chosen a different regional strategy. As the Cherokee prepares for its 2025 debut, one thing remains certain: the automotive world will be watching closely to see whether this legendary nameplate can reclaim its rightful place among America’s automotive royalty.
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