The Reason Jeep Discontinued The Cherokee After Nearly 50 Years
Jeep introduced the SJ Cherokee in 1974, then updated it to the XJ version for the 1984 model year. That model held fast through 2001, thanks in large part to the dependable 2.5-liter inline four and 4.0-liter straight six engines developed by American Motors, which owned the Jeep brand from 1970 through 1987. The Cherokee badge went on hiatus in the United States from 2002 through 2014, when the model known globally under that name was sold as the Liberty in its home market.
The fifth of the five generations that debuted in 2014 placed second to the XJ in our rankings of every Cherokee model, based largely on prestigious honors bestowed on it by Motor Trend and Motor Week during that era. Those awards weren't enough to keep the Cherokee in Jeep's lineup past the 2023 shutdown of the Belvidere, Illinois plant where it was manufactured, but why was the Cherokee discontinued?
[Featured image by IFCAR via Wikimedia Commons|Cropped and scaled|Public Domain]
Declining sales were just one reason for the Cherokee's demise
Chrysler is now part of the Stellantis group, a company formed by the merger of Fiat Chrysler and the Peugeot group a few years ago. Under Stellantis, sales of the Cherokee have lagged behind some of Jeep's other models. Jeep sold only about 11,000 Cherokees in the first quarter of 2022, while almost 45,000 Wranglers and 75,000 Grand Cherokees left dealership lots during that same period. Reuters reported that Cherokee production was moved to a plant in Toluca, Mexico, and United Auto Workers shop chairman Tim Ferguson told that wire service he was not thrilled with that development.
"It's a pretty tough pill to swallow that they're going to ship your vehicle to Mexico," Ferguson said. Economic considerations may not have been the only factor in the Cherokee's discontinuation, though. Cherokee Nation principal chief asked Stellantis to stop using his tribe's name back in 2021, and at the time, Stellantis CEO Carlos Tavares told the Wall Street Journal he would consider such a measure. "We are ready to go to any point," Tavares said. "Up to the point where we decide with the appropriate people."
The Cherokee could be back as an EV
The Grand Cherokee has remained in the Jeep lineup through the 2025 model year, and the original badge may be brought back soon as a battery electric vehicle. The all-electric 2024 Wagoneer S will hit dealerships in the U.S. and Canada this fall, with a 600-horsepower drivetrain and up to 300 miles of range. Jeep could easily adapt that vehicle's STLA Large platform into a smaller one for the new Cherokee, either supplementing or displacing the Grand Cherokee.
Kelley Blue Book reported that Jeep dealers had about 101 days worth of Cherokee inventory on their lots as of the end of last February, far more than the industry guideline of two months' worth. According to a statement posted to one dealership's website, "The decision to discontinue the Cherokee reflects Jeep's commitment to refining its lineup and focusing on models with the highest demand and potential for growth."
The Cherokee might not be dead yet, though. A company spokesperson told Motor 1 last spring, "We have plans for that important vehicle in that important segment, which we will reveal in due time." When and if those plans are revealed, you can be sure SlashGear will pass them on to you.