2026 Jeep Cherokee
Michael Wayland / CNBC
LOS ANGELES – Stellantis is relying on the return of the Jeep Cherokee to assist lead a U.S. turnaround for the SUV model and embattled automaker.
The Cherokee returns after a three-year hiatus, rejoining the compact and midsize car markets, which symbolize the most important segments within the U.S. It additionally marks Jeep’s first conventional hybrid mannequin and its most fuel-efficient, gas-powered car ever within the U.S.
“It is a important car for us,” Richard Cox, Jeep senior vice chairman of brand name operations, advised CNBC throughout a media occasion for the 2026 Cherokee. “I feel this expands our attain with this degree of powertrain, with this degree of gas effectivity and functionality.”
The car is at present arriving in U.S. dealerships as arguably crucial U.S. launch for the automaker this 12 months. Stellantis is trying to regain market share after vital losses lately.
The automaker has set a goal to extend retail gross sales by roughly 25% in 2026 to 1.15 million automobiles, pushed by up to date and new fashions in addition to pricing and product realignments to maneuver automobiles off vendor tons.
“It is an enormous a part of our progress,” Cox stated relating to the brand new Cherokee. “It positions us effectively in ’26.”
The inside of the 2026 Jeep Cherokee Overland.
Stellantis
Final 12 months, Jeep narrowly reported its first annual gross sales improve – up lower than 1% – since 2018, when the model achieved gross sales of greater than 973,200 models. That compares with gross sales of 593,401 Jeeps in 2025, a 39% decline over the seven-year interval.
The 1% annual gross sales progress for Jeep wasn’t sufficient to elevate Stellantis’ general U.S. gross sales into the black for the 12 months, although. The dad or mum firm reported a 3% decline in U.S. gross sales in 2025 – marking its seventh consecutive fall amid a failed push into all-electric automobiles and vital value slicing and worth will increase beneath former CEO Carlos Tavares.
Sean Hogan, a Los Angeles-area vendor who’s main Stellantis’ franchised nationwide vendor council, believes the 25% goal improve in U.S. gross sales is achievable with the corporate’s new management and product slate.
“We have been lacking Cherokee. It is large to us. It is large to Jeep, and I feel they nailed it,” stated Hogan, vice chairman of Sierra Auto Group. “It is key for us to getting the machine turned again on to start out the quantity that is going to be flowing once more and generate the capability in our dealerships. It is bringing in new prospects.”
Jeep Cherokee is precedence
Jeep believes it has a winner with the Cherokee, much more so than the final technology of the car that peaked at practically 240,000 models bought in 2018.
The corporate declined to debate manufacturing expectations, nevertheless it possible will not have the ability to obtain related gross sales numbers till the corporate provides U.S. output capabilities. Plans to broaden manufacturing at an Illinois plant are anticipated as early as subsequent 12 months.
The Cherokee is at present solely being produced at a plant in Toluca, Mexico, that additionally manufactures a smaller Jeep Compass SUV and Jeep Wagoneer S EV, and is slated to supply the upcoming Jeep Recon EV as quickly because the second quarter.
Stellantis’ Toluca plant is estimated to have the capability to supply 303,000 automobiles yearly, in response to AutoForecast Options.
The auto intelligence and forecasting agency expects Jeep’s U.S. gross sales this 12 months to extend roughly 10% to 650,000 models, led by the Cherokee, in response to Sam Fiorani, AFS vice chairman of world forecasting.
Jeep CEO Bob Broderdorf advised CNBC in December that Cherokee is the precedence for the model amid slowing EV gross sales.
“As soon as Cherokee is finished and has an excellent run charge, then we are able to begin on Recon,” he stated. “Recon, I am not in a rush. I need to get the standard proper of Cherokee, after which as quickly as we’re assured, OK, activate the Recon.”
Broderdorf has been main a turnaround technique for Jeep since being named CEO in February. These efforts have included considerably decreasing costs and mannequin complexity and shifting away from the model’s all-electric plans as a part of a broader pullback by Stellantis that may value the corporate $26 billion.
2026 Cherokee
The 2026 Cherokee is a standard hybrid – a expertise pioneered by the Toyota Prius – that doesn’t require a plug, however does use a small battery and electrical motors to help gas economic system.
Jeep has traditionally been identified for its massive, boxy gas-guzzling SUVs, however the Cherokee is predicted to realize 37 mixed miles per gallon, together with 35 mpg on the freeway and 39 mpg within the metropolis.
2025 Jeep Cherokee SUV
Stellantis
“These are very aggressive numbers,” stated Mike Cockell, director of Jeep Cherokee nameplate. “It is a car that should do all of it for the shopper, and we really feel we’re in a position to do all of it. It is like a Swiss military knife.”
The updates are an try and make the car extra aggressive in opposition to manufacturers comparable to Toyota in addition to to capitalize on anticipated progress in hybrid automobiles.
“Electrification traits are fairly flat. Hybrid traits are completely rising,” Cox stated. “So, I feel it was a giant transfer in the proper path.”
The Cherokee includes a 1.6-liter turbocharged, four-cylinder hybrid powertrain rated at 210 horsepower and 230 foot-pounds of torque. It options commonplace four-wheel drive, comparatively massive inside screens, and 140 commonplace and out there security and security measures.
Beginning pricing for the Cherokee ranges from roughly $37,000 to $46,000, in response to Stellantis. The bestselling mannequin is predicted to be the $39,995 Cherokee Laredo, which Stellantis says is projected to symbolize 36% of the car’s gross sales.
The pricing positions the midsize car to be aggressive in its personal phase in addition to in opposition to compact SUVs such because the Toyota RAV4 and Honda CR-V.
Jeep officers say these two manufacturers served as benchmarks for the up to date Cherokee.
‘Now we have plenty of prospects which have both defected or they’ve moved into one thing else as a result of we did not have a product providing for them. So, that is our likelihood to get them again into the household, and I feel do some conquesting as effectively,” Cox stated.
