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The second XJ generation of the Jeep Cherokee stunned audiences worldwide when it was launched in 1984, the vehicle proving to be a huge step forward when compared to the preceding SJ variant of the model. It blew the competition, such as the Ford Explorer and Chevrolet Blazer, out of the water with its impressive compromise between being a usable on-road family wagon and a rugged off-road weapon.

The Cherokee has struggled to maintain this superiority with subsequent generations though, and even fell behind the vast majority of its rivals. Should Jeep want to make use of the historic nameplate in the future, there are several elements it needs to consider if it wants the vehicle to become an SUV heavyweight once more.

The Cherokee Has Retained The Same Recipe For Decades

The Cherokee has had lived a varied life so far, with only three generations of the five even attached to the name. For a 12-year period in the middle, it was renamed the Liberty as Jeep looked to take the vehicle in a slightly different direction from those that went before. That said, the overall brief of the Cherokee has remained the same since the second-gen version; a compact five-seater SUV that combined on-road usability with off-road prowess.

Above: 2014-2023 Jeep Cherokee KL

The change in direction came as SUVs became a popular automotive market during the 1980s, thanks to the likes of the Range Rover and Toyota Land Cruiser. Following the successful XJ, the model spent two generations being known as the Liberty before the Cherokee name was brought back in 2014, amidst falling sales for the former.

The Cherokee Was Forced Into Extinction By Falling Sales

The plan worked for a while, with the resurrected 2014 Cherokee KL, which looked more like a soft-roader than the rugged Cherokee XJ that proved so popular, as sales saw a healthy increase. Having dropped as low as 50,000 annual sales in the US, the Liberty’s final full year on sale saw figures of 75,000 sold in the nation. The Cherokee immediately improved on this, with 178,000 examples sold in its first full year.

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Its best year was 2018, when nearly 240,000 of the things found new owners. Things took a turn for the worse after this though, as its rivals progressed and left the aging and relatively expensive Cherokee in their dust. Sales slumped to just 40,000 units by 2022, leading to the model being dropped in 2024, but the absence of a replacement so far has done some damage to the Jeep brand.

The Cherokee Lost Its USP Over Time

One of the main reasons the Cherokee XJ was so successful was that it mated on-road and off-road elements together so well. Its lightweight unibody design meant that it was significantly lighter than its SJ predecessor, making it better to drive both on and off the road, as well as more efficient. Its intelligent design meant that it got the better of its rivals on both surfaces, while its classless design meant it appealed to a wider range of customers, too.

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It proved so popular that Jeep even renamed its planned successor the Grand Cherokee so that it could keep selling the XJ, and the vehicle ended up remaining on the brand’s price list for a full 18 years. Wanting to move into the future, the Cherokee name was ditched in favor of the Liberty, and this was where things took a turn for the worse. Due to Jeep’s brand image being more of offering rugged and dependable off-roaders, the marque doubled down on this approach with the new model.

The Liberty Sacrificed On-Road Ability To Be Better On The Rough Stuff

The biggest sin with the Liberty was that it was geared more towards being strong off-road, which meant its on-road performance was compromised. While this gave it somewhat of a USP over its rivals, Jeep forgot that SUVs spend the vast majority of their time on the road. The XJ was so popular as it was excellent on the smooth stuff, but could cut the mustard on the rarer times it ended up on an off-road trail.

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The Liberty fell short of its rivals where most of its buyers spent most of their time, which negatively affected its reputation and led to a fall in sales. It arguably went too far in the other direction when the Cherokee was brought back, with the last KL generation looking like a meek and mild crossover. Drivers felt like heroes when piloting their commanding-looking XJs, and the Cherokee KL simply couldn’t replicate this image, despite a very capable Trailhawk trim. Combine this with an aging design and competitors like the Toyota RAV4 that offered better value for money and superior reliability, and the Cherokee was left in the rearview mirror.

Jeep Needs To Find A Better Balance For Potential Future Cherokees

Whether the Cherokee will return or not is up in the air, as Jeep applied for the Liberty trademark once more in 2022, hinting that the future could transition back to its former name once more. Either way, Jeep needs to find a better balance between on and off-road performance than more recent versions have. Taking advantage of the current retro design trend would prove to be a good start, as it could bring back a rugged and boxy outline that worked so well for the XJ on a future vehicle.

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Combine this with a more modern interior and contemporary powertrains, such as more efficient hybrid and possibly full EV platforms, and this could prove a potent mix. The retro SUV sector is in rude health, and the return of a proper old-school Cherokee could give the likes of the resurrected Ford Bronco a run for its money, especially if Jeep can engineer a more road-based balance than the Bronco, which is geared more towards off-road enthusiasts.

The All-Conquering Cherokee XJ Represents A Great Used Deal

For now, though, you’ll have to settle for the old XJ if you want to experience peak Cherokee. Luckily, principally due to their age, they can be had for a bit of a bargain in 2025. According to Classic.com, the average auction sale price for XJs currently sits at just $13,284, making getting a lower-mileage and tidy example realistic at a tempting price. A good example is a green 2000 Cherokee Sport, which is being offered by Worldwide Vintage Autos for $14,900. It has covered 107,000 miles, but is presented in excellent condition inside and out.

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RepairPal reports that the XJ is also pretty affordable to keep running sweet, too, as it should only cost around $520 a year to maintain to a good standard. The range of engines in the later examples, from 1997 until the end of production in 2001, is more efficient than the earlier ones, though all have proven robust in the years since. Until Jeep decides to get its act together with its compact SUV, why not opt for the daddy?

Sources: Jeep, Worldwide Vintage Autos, RepairPal, Classic.com, Bring a Trailer.