Jeep decided to change the Cherokee XJ after 17 years into production and replaced it with the Cherokee/Liberty lineup in 2001.
While the Jeep Cherokee XJ was loved and appreciated for its off-road capabilities and small exterior size that made it easy to use in cities, the 2001 model was different, and not in a good way. There were many wrong things about the car, starting with the name. People, especially Jeep-people, didn't like it, and they said that the 1984 Cherokee was a much better vehicle and, even more, a better-looking one.
In 2001, Chrysler was in the DaimlerChrysler alliance, and the management thought that the boxy-looking vehicle's design was gone. The designers tried to offer a rounded shape, with a Wranger-inspired front end. The two-round headlights and the seven vertical slats on the grille were already a trademark for Jeep, and the marketing department decided to install them on the 2001 Cherokee/Liberty. To make the car looks like it was ready to tackle hard off-road tracks the vehicle featured plastic moldings over the wheel arches. Unlike its predecessor, the 2001 model featured the spare wheel mounted on the tailgate, and not inside as before.
There was a big improvement on the interior. It featured more comfortable seats for up to five adult passengers. Instead of angular panels and rough-looking buttons, the 2001 Cherokee featured rounded shapes, circular vents, and a simple dashboard layout with only four gauges instead of six as before. But, at least, it featured a split-folding rear bench and headrests for the three people in the back.
Under the hood, Jeep installed a choice of gasoline and diesel engines. While the former was offered especially on the U.S. market, the latter were in high-demand on the European continent.