Jeep is taking a bold step to win back momentum in the U.S. SUV market. After six consecutive years of sales declines, parent company Stellantis has officially unveiled the all-new 2026 Jeep Cherokee—a redesigned model that reintroduces one of the brand’s most iconic nameplates while debuting its first hybrid system in North America.
A Return of an Icon
The Jeep Cherokee has been a cornerstone of the brand’s history for decades, but in 2023, Stellantis discontinued the model under then-CEO Carlos Tavares as part of broad cost-cutting measures. The decision left a noticeable gap in Jeep’s SUV lineup, particularly between the compact Compass and the larger Grand Cherokee.
Now, under new leadership, Stellantis is bringing the Cherokee back with fresh ambition. Jeep CEO Bob Broderdorf highlighted the model’s significance during an interview with CNBC, emphasizing that the Cherokee is critical for reclaiming lost ground in the competitive SUV market.
“This is the biggest segment in the United States, and bringing this back into our portfolio is a perfect fit between the Compass and the Grand Cherokee,” Broderdorf said. “This is obviously one of the largest misses from our sales decline that is now going to help reinvigorate a positive direction for us going forward.”
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Debut of Stellantis’ New Hybrid System
The 2026 Jeep Cherokee marks a milestone as it introduces Stellantis’ first hybrid powertrain in North America. The SUV is powered by a 1.6-liter turbocharged four-cylinder hybrid engine designed to deliver efficiency without sacrificing capability. According to Stellantis, the Cherokee will achieve more than 500 miles per tank, setting it apart in a segment where range and fuel economy are increasingly important to buyers.
Broderdorf noted that hybrid technology completes Jeep’s evolving portfolio. “Hybrid was the perfect piece to round out the rest of our portfolio,” he explained. The move positions Jeep to better compete with rivals who have leaned heavily into electrified SUVs in recent years.
Bigger, Bolder, and Smarter
Compared to its predecessor, the 2026 Cherokee is longer, taller, and wider, offering drivers more interior room and functionality. Cargo capacity has increased by 30%, making it one of the most versatile options in its class.
The cabin reflects Stellantis’ commitment to blending rugged design with modern technology. Jeep describes the interior as “technology-filled,” featuring the brand’s new Connect One services package, which offers improved connectivity, advanced safety tools, and upgraded infotainment. The Overland trim, one of the more premium versions, showcases Jeep’s push toward luxury-inspired detailing while maintaining its off-road heritage.
Pricing and Production
The entry-level 2026 Jeep Cherokee starts at $36,995, which includes a $1,995 destination charge. Production will take place at Stellantis’ plant in Mexico, with vehicles expected to arrive at U.S. dealerships by late 2025 and early 2026.
By pricing the Cherokee competitively, Stellantis aims to appeal to a broad range of buyers seeking a balance of affordability, capability, and efficiency. The positioning between the Compass and Grand Cherokee should also help recapture customers who may have left the brand when the Cherokee was discontinued.
Sales Declines and Tariff Challenges
The relaunch comes at a critical time for Stellantis and Jeep. Jeep’s U.S. sales have slipped for six straight years, eroding the brand’s once-dominant market presence. Reintroducing the Cherokee is a strategic play to regain relevance in the mid-size SUV category—a key battleground in the American auto industry.
Adding to the challenge, Stellantis is facing significant cost pressures tied to tariffs under the Trump administration. The company estimates the financial hit at 1.5 billion euros ($1.74 billion) for the year.
“Costs are certainly going to be impacted by tariffs,” Broderdorf acknowledged. “But obviously, being a global brand and having multiple nameplates at the plant, it allows us to be very, very flexible.”
Leadership Shift and Strategic Vision
Antonio Filosa, who stepped into the role of Stellantis CEO earlier this summer, has deep ties to Jeep, having previously served as the brand’s chief executive. His leadership has signaled a renewed focus on restoring Jeep’s market share and strengthening Stellantis’ North American portfolio.
In July, Stellantis reported gradual improvements in first-half earnings, with Filosa striking an optimistic tone about the company’s future. “My first weeks as CEO have reconfirmed my strong conviction that we will fix what’s wrong in Stellantis by capitalizing on everything that’s right in Stellantis—starting from the strength, energy and ideas of our people, combined with the great new products we are now bringing to market,” Filosa said.
The Cherokee revival represents one of those “great new products” central to Stellantis’ strategy. For Jeep, it’s not just about reintroducing a familiar model—it’s about making a statement that the brand intends to remain competitive as the auto industry evolves toward electrification and innovation.
What the New Cherokee Means for Jeep
The Cherokee’s return is more than a simple product launch. It reflects a larger strategy by Jeep to:
- Reclaim lost sales volume by filling the gap in its SUV lineup.
- Showcase Stellantis’ hybrid technology in one of the brand’s most iconic nameplates.
- Appeal to both loyal Jeep fans and new buyers seeking practicality, efficiency, and modern features.
- Position Jeep competitively against rivals like Toyota’s RAV4 Hybrid, Ford’s Escape Hybrid, and Honda’s CR-V Hybrid.
With its combination of heritage-inspired design, hybrid performance, and upgraded technology, the 2026 Cherokee has the potential to reestablish Jeep in a segment it once helped define.
Frequently Asked Questions
Why did Stellantis bring back the Jeep Cherokee?
Stellantis reintroduced the Jeep Cherokee to fill a major gap in its SUV lineup after discontinuing the model in 2023. The brand is aiming to recover from six consecutive years of sales declines and strengthen its presence in the competitive mid-size SUV market.
What is new in the 2026 Jeep Cherokee?
The 2026 Jeep Cherokee debuts Stellantis’ first hybrid powertrain in North America, featuring a 1.6-liter turbocharged four-cylinder hybrid engine. It offers more than 500 miles per tank, 30% more cargo space, a larger body design, and a high-tech interior with the new Connect One services package.
When will the 2026 Jeep Cherokee be available?
The new Jeep Cherokee will arrive at U.S. dealerships starting late 2025 and into early 2026, with production taking place at Stellantis’ plant in Mexico.
How much will the 2026 Jeep Cherokee cost?
The entry-level 2026 Jeep Cherokee is priced at $36,995, which includes a $1,995 destination charge. Higher trims, such as the Overland, will carry higher prices with additional features.
Is the new Jeep Cherokee a hybrid?
Yes. The 2026 Jeep Cherokee is Jeep’s first model in North America to feature a hybrid powertrain, delivering strong fuel efficiency and extended driving range.
How does the new Cherokee compare to other Jeep SUVs?
The Cherokee sits between the compact Compass and the larger Grand Cherokee. It combines everyday practicality with off-road capability, making it a versatile option for drivers who want a balance of size, efficiency, and performance.
What challenges does Stellantis face with the Cherokee relaunch?
Stellantis is navigating rising costs from tariffs and stiff competition in the SUV market. However, the company’s hybrid innovation and revived Cherokee lineup are key strategies to win back market share.
Conclusion
The return of the Jeep Cherokee marks a pivotal moment for both Stellantis and the Jeep brand. After years of sales decline and the temporary discontinuation of the model, the redesigned 2026 Cherokee signals a renewed commitment to innovation, efficiency, and customer demand. With its debut hybrid powertrain, expanded cargo space, and technology-driven interior, the SUV bridges tradition with modern performance.