Los Angeles — Jeep will add a hybrid gas-electric vehicle next year as it replaces the compact Cherokee SUV.
Jeep brand CEO Antonio Filosa made the announcement at the Los Angeles Auto Show while outlining a series of aggressive moves the brand plans as it faces market headwinds. Jeep parent Stellantis NV recently announced it would lay off about 1,100 workers and cut a shift at a Jeep plant in Toledo, Ohio.
The hybrid would be part of a planned Cherokee SUV model line replacement — one of five new models that Jeep will unveil in 2025. The compact Cherokee went out of production in February 2023 when Stellantis idled the Belvidere Assembly plant in Illinois.
“2025 will be landmark year for Jeep,” added Jeep North America CEO Bob Broderdorf as it invests $3.2 billion in new products.
Jeep markets 4xe hybrid models across the vehicle lineup including the Grand Cherokee and Wrangler 4xe models in the United States. The latter is the industry’s best-selling plug-in hybrid model. In Europe, Jeep sells 4xe versions of the Compass and Renegade.
Broderdorf also touted Jeep’s first all-electric model, the compact, 600-horsepower Wagoneer S that will go on sale early next year as a 2025 model estimated to start at $65,000.
Broderdorf emphasized model affordability, however, as Jeep dealers have groused about expensive inventory sitting on their lots. Automakers like Jeep have been subsidizing the high cost of electric vehicle R&D by making higher-margin gas-powered SUVs.
Broderdorf said the Jeep Wagoneer mega-ute will be the most affordable large SUV at a starting price of under $60,000, and that the Jeep Grand Cherokee sports two trims under $40,000 and the subcompact Compass two trims under $30,000.
Henry Payne is auto critic for The Detroit News. Find him at hpayne@detroitnews.com or @HenryEPayne.
