Sunita Somvanshi
Jeep has revealed its new 2026 Cherokee after a nearly three-year hiatus, marking a significant shift for the brand that has faced six consecutive years of declining sales. The newly redesigned SUV features Jeep’s first hybrid system in North America, positioning it as a critical piece in parent company Stellantis’ strategy to reverse its market slide.
The hybrid-only Cherokee comes with a 1.6-liter turbocharged four-cylinder engine paired with two electric motors, producing 210 horsepower and 230 pound-feet of torque. This system targets an impressive 37 miles per gallon combined and offers more than 500 miles of range on a single tank.
“Hybrid was the perfect piece to round out the rest of our portfolio,” Jeep CEO Bob Broderdorf told CNBC. “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.”
The new Cherokee has grown in every dimension – longer, wider, and taller than its predecessor. These changes have resulted in 30% more cargo space, addressing a key consumer need in the competitive midsize SUV segment dominated by the Honda CR-V and Toyota RAV4.
Inside, drivers will find a technology-focused cabin featuring a 10.25-inch digital instrument cluster and a 12.3-inch infotainment touchscreen. The vehicle comes standard with Stellantis’ new Connect One services package that includes over-the-air updates.
The entry-level 2026 Cherokee starts at $36,995 including a $1,995 destination charge. However, only the higher-end Limited and Overland trims (priced at $42,495 and $45,995 respectively) will arrive at dealerships first, near the end of 2025. The base model and Laredo trim will follow in early 2026.
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The Cherokee’s return comes at a challenging time for Stellantis. The company is not only battling years of declining Jeep sales but also facing new tariff pressures. President Donald Trump’s 25% border tax on imported vehicles could significantly impact the Cherokee, which will be produced at Stellantis’ plant in Mexico. The company estimates tariffs could cost it 1.5 billion euros (approximately $1.74 billion) this 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.”
While the engine will be produced at Michigan’s Dundee Engine Plant and the transmission in the United States, the battery comes from a foreign supplier. This mixed sourcing may help mitigate some tariff impacts through U.S. content discounts.
Antonio Filosa, who took over as Stellantis CEO earlier this summer after serving as Jeep’s chief, has made revitalizing the Cherokee brand a key part of his strategy to recover market share. In July, the company projected gradual improvement in performance over the coming months.
“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,” Filosa stated in July.
The Cherokee’s boxy design represents a return to its roots, recalling the popular XJ-generation models from the 1980s and 1990s. This approach moves away from the more controversial aerodynamic styling of the previous generation, which divided opinion among Jeep enthusiasts.
With standard 4×4 capability, the 2026 Cherokee maintains Jeep’s off-road credentials while adding hybrid efficiency to compete in today’s fuel-conscious market.
