Jeep pauses Cherokee SUV production indefinitely

American off-road specialist Jeep is putting production of its Cherokee medium SUV at the Belvidere, Illinois plant on indefinite hold from February 28, 2023.

The resulting lay-offs are significant in the US, with Jeep issuing a statement to North American outlet Jalopnik suggesting partial unemployment will last at least six months for the 1350 affected employees. The brand says it will attempt to redistribute employees within the Stellantis family.

Jeep and Stellantis’s decision to pause production of the Cherokee SUV comes partly due to supply chain issues, but mainly to free up resources as the brand pushes for greater electrification in its range.

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Falling in line with Stellantis’s global push for EVs, Jeep is ramping up towards three new EVs by 2025, including the small Avenger that was revealed in October, a large prestige SUV and a Wrangler-style off roader.

The Cherokee’s future is therefore a little uncertain, with no production in Europe for Jeep’s competitor in what is Australia’s largest market segment.

Having been on sale since 2014 in Australia, the Cherokee is getting on in years. Jeep has sold just 303 Cherokees in Australia so far in 2022, 17.7 per cent down on 2021's numbers and with only 0.2 per cent of the medium SUV market.

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With the popularity of medium SUVs across the world, the next-gen Cherokee – due in 2025 – is tipped to be all-electric. Though if the current car ceases production early, that vehicle's development may be yanked forward.

There are some rumblings that Cherokee production could move south of the border to the Stellantis plant in Toluca, Mexico – though Jeep or Stellantis is yet to confirm these plans.

Stellantis also has production facilities elsewhere in the world, but its smaller Compass that’s produced in Italy, Brazil, China, India and Mexico, and was updated earlier this year, has far greater global appeal.