Jeep Teases the All-New 2025 Cherokee, Hybrid Powertrain Confirmed

Jeep is bringing back the Cherokee — and this time, it's going hybrid.

The American SUV maker has released the first official image and details of the redesigned 2025 Jeep Cherokee, giving fans a sneak peek at what’s coming later this year. The new model marks a significant step for Jeep as it tries to bounce back from years of sliding sales.

All-New 2025 Cherokee suv updated 2025

A Fresh Start for a Familiar Name

The Cherokee nameplate is back — and Jeep is betting big on it. The company confirmed the new midsize SUV will feature a hybrid powertrain, though it’s still keeping specifics under wraps. For now, it’s unclear if we’re talking about a standard hybrid or a plug-in hybrid electric vehicle (PHEV), but both options would align with Jeep’s electrification push.

“The all-new Jeep Cherokee headlines our efforts to deliver more product, innovation, choice and standard content to customers than ever before,” said Bob Broderdorf, head of the Jeep brand.

Positioned between the smaller Compass and the larger Grand Cherokee, the 2025 Cherokee is meant to fill a crucial spot in Jeep’s SUV lineup — and appeal to buyers looking for versatility without the Grand Cherokee price tag.

Pricing That Actually Makes Sense?

One of Jeep’s challenges in recent years has been affordability. As prices climbed, customers started looking elsewhere. The previous Cherokee started at around $30,000, and it was tough to justify that cost when the Compass came in at $27K and the Grand Cherokee wasn’t far off at $36.5K.

Jeep hasn’t released pricing yet for the 2025 model but promises it will be “competitive” — likely a sign they know the market’s watching closely.

Built in Mexico? Possibly.

Jeep declined to say where the new Cherokee will be built, but industry insiders and union reps believe it’ll be produced in Mexico. That decision reportedly dates back several years — even before Donald Trump’s administration and the 25% tariffs on imported vehicles.

The last Cherokee was built in Illinois, but that plant was idled in 2023 when Jeep discontinued the model as part of a cost-cutting effort.

Jeep’s Sales Have Been Struggling — Can the Cherokee Help?

This relaunch comes at a critical moment for Jeep. The brand has reported six straight years of declining sales in the U.S. — including a 10% drop just in the first quarter of 2025. The Cherokee, once a popular name in the lineup, was discontinued after the 2023 model year, along with the smaller Renegade.

Jeep’s hoping the new Cherokee can help reverse that trend. And it’s not just any model — this SUV will likely be central to the turnaround strategy being led by Antonio Filosa, the newly appointed CEO of Stellantis’ Americas division and the former head of the Jeep brand globally.

What People Are Asking

Question	Answer
Is the Cherokee an SUV?	Yes — it's a midsize SUV designed for both urban driving and light off-road use.
Is the Grand Cherokee a luxury SUV?	It offers premium features and trims, but it’s positioned just below the luxury segment.
Is the new 2025 Cherokee a hybrid?	Yes, Jeep confirmed it will offer a hybrid powertrain, though full details haven't been released.
What is the expected price of the 2025 Cherokee?	Exact pricing hasn't been announced, but Jeep says it will be competitively priced between the Compass and Grand Cherokee.
Where will the 2025 Cherokee be built?	Production is expected in Mexico, although Jeep has not officially confirmed the location.
Is the 2025 Cherokee a 7-seater?	No, the 2025 Cherokee is expected to have seating for five. The Grand Cherokee offers a 7-seat option.
When will the new Cherokee be available?	The SUV is set to arrive at dealerships later in 2025. Launch timing may vary by market.
Will the Cherokee be available as an all-wheel drive?	Most likely — Jeep traditionally offers AWD or 4x4 systems across its SUV lineup, especially for off-road trims.
Has the Cherokee been redesigned?	Yes, the 2025 model features a full redesign as part of Jeep's product refresh strategy.