Key Points:
- Stellantis relaunched the Jeep Cherokee after a three-year break.
- The 2026 model is a traditional hybrid with 37 miles per gallon.
- Jeep aims to increase retail sales by 25 percent this year.
- Prices start around $37,000 to compete with Toyota and Honda.
Stellantis is betting its future in America on an old favorite. The automaker is officially bringing back the Jeep Cherokee after a three-year hiatus. This relaunch is the centerpiece of a major turnaround strategy for the struggling brand. The new Cherokee arrives as Jeep’s first traditional hybrid, designed to win back customers who want fuel efficiency without needing to plug in.
The 2026 Cherokee targets the massive compact and midsize SUV market. Jeep executives call this their most critical launch of the year. The brand has suffered significant losses recently, with sales dropping nearly 40 percent since its peak in 2018. To fix this, Stellantis set an ambitious goal to boost retail sales by roughly 25 percent in 2026, targeting 1.15 million vehicles sold.
Dealers are optimistic about the return. Sean Hogan, a leading Stellantis dealer, believes the new model is essential for bringing traffic back into showrooms. “We’ve been missing Cherokee,” Hogan said. He noted that the new SUV is key to winning back customers who left the brand because Jeep didn’t have a product that fit their needs.
The new model focuses heavily on efficiency. Unlike the gas-guzzlers of the past, this hybrid expects to achieve a combined 37 miles per gallon. It features a 1.6-liter turbocharged engine paired with electric motors, delivering 210 horsepower. This setup allows Jeep to compete directly with popular rivals like the Toyota RAV4 and Honda CR-V.
Pricing is also aggressive. The Cherokee starts at roughly $37,000, with the most popular trim expected to cost just under $40,000. Jeep officials hope this price point will attract budget-conscious families. However, supply might be an initial challenge.
Currently, the company produces the vehicle only at its plant in Toluca, Mexico. While plans exist to expand production to Illinois next year, the brand must first prove that Americans still want a compact Jeep pickup in a crowded market.
