Detroit — Jeep has unveiled the first glimpse of its new Cherokee SUV, aiming to bolster the brand’s lineup as it navigates through recent sales challenges. The company plans to launch the 2025 model later this year, a key component of its strategy to revitalize the Jeep brand.

The new midsize SUV will offer a hybrid powertrain option, though specifics regarding whether it will be a traditional hybrid or a plug-in hybrid electric vehicle have not yet been disclosed. Jeep executives acknowledge the importance of this model, stating that it will enhance customer choices and provide competitive pricing in a highly popular vehicle segment.

Jeep’s CEO, Bob Broderdorf, highlighted the significance of the Cherokee in their product strategy, noting its position between the Jeep Compass and the Grand Cherokee as a strategic addition to the lineup. “This all-new model is central to our commitment to deliver innovation and value to our customers,” Broderdorf said.

Despite the introduction of the new Cherokee, affordability remains a pressing concern for Jeep. The starting price for the previous model was around $30,000, which places it close to the Compass. The Grand Cherokee’s base price is approximately $36,500, revealing a tiered pricing strategy that seeks to maintain competitiveness amidst rising manufacturing costs.

While more details about the production of the new Cherokee have yet to be revealed, reports suggest that it could be manufactured in Mexico. This decision follows a trend of relocating production to reduce operational costs, a move made prior to recent political changes pertaining to trade tariffs. The last generation of the Cherokee was produced in Illinois but was discontinued in early 2023 as part of a broader restructuring aimed at cutting costs.

The discontinuation of both the Cherokee and the smaller Renegade model has played a crucial role in Jeep’s continued sales downturn, which has persisted for six years. Recent data indicates a 10% drop in U.S. sales during the first quarter of the year, highlighting the urgent need for revitalization.

Jeep finds itself under the leadership of incoming Stellantis CEO Antonio Filosa, who previously directed the brand’s turnaround efforts. His promotion underscores the importance of Jeep in the larger strategy of Stellantis to stabilize and grow within the competitive automotive sector.

As the market continues to evolve, Jeep’s upcoming Cherokee could serve as a pivotal model that aligns with consumer preferences for versatile, hybrid vehicles, positioning the brand to regain its footing in a segment that is increasingly dominated by new technology and customer demand.