After a slow start and some not very cheerful appreciations from the customers, Jeep tried to improve the Cherokee/Liberty's third generation.
Mercedes-Benz and Chrysler allied in 2001, and soon, the German carmaker helped Jeep to improve its products. The American carmaker chose the strategy to name the car Liberty on the North-American market, which created less confusion among its customers. It was no longer a rough off-road vehicle, like its predecessor, but designed more for a comfortable ride, and it could still tackle some tracks and forest paths.
From the outside, there were slight changes in the bodywork. Depending on the trim level, the car featured black or body-colored moldings over the fenders and side skirts. Its chromed-polished grille resembled the older Willy's and helped the SUV integrate into the Jeep family. The fog-lights were integrated into the grille above the bumper, which was redesigned.
Inside, it featured an updated look for the dashboard and, especially, the instrument panel that sported white dials. The Cherokee/Liberty dropped its angular panels and rough-looking buttons from the previous generation. Its third-generation 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, Mercedes-Benz insisted on offering the 2.8-liter CRD diesel for the North-American market, which offered a great fuel-efficiency. Its emissions, though, were too high for several states, but its high torque at low-end revs was convincing. It was available only for two years, and it succeeded in selling over 10.000 oil-burners in the first year.