Jeep has indeed closed down the Cherokee model after the 2023 model year. If this decision stands, it will be the end of an era for GM’s most well-known SUV. The move is one piece of a larger cost-cutting initiative. It includes some pretty massive production realignments to address the brand’s eight consecutive years of sales declines. The Cherokee was already one of the most expensive models in the compact SUV class, starting at an MSRP of around $30k for the 2022 model year. After its discontinuation in early 2023, production was already stopped at the plant in Illinois.
The Cherokee is known for its tough exterior and superior off-road performance. Of all the different flavor ice cream cones it comes in, the most loved deliciousness among enthusiasts is the Trailhawk variant. Despite the brand’s market strength, Jeep has made the determination to pull the model. This latest transition reflects an evolution in strategy as the firm moves in concert with new consumer tastes and ongoing inflationary pressure.
Bob Broderdorf, a representative from Jeep, stated, “The all-new Jeep Cherokee headlines our efforts to deliver more product, innovation, choice and standard content to customers than ever before.”
The end of the Cherokee is a significant loss for the company. It affects the local economies that depend on the production. The Illinois plant where it was manufactured has been idled since early 2023, leading to concerns about job security and economic impact on the region.
Moving forward, Jeep is set to launch a new version of its Compass SUV that’s projected to be made at a factory in Mexico. This decision was made long before the election of then President Donald Trump. Further complicating the situation is the impact of the current 25% tariffs on all imported vehicles into the U.S. With this new model, the company is aiming for a more competitive market segment. It’ll be positioned between the Jeep Compass and Jeep Grand Cherokee.
Broderdorf emphasized the importance of pricing strategy, stating, “Jeep Cherokee will boast competitive pricing that strikes at the core of the largest vehicle segment and sits perfectly between Jeep Compass and Jeep Grand Cherokee to bolster our winning mainstream lineup.”