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Jeep Cherokee Relaunch Drives Stellantis’ U.S. Sales Comeback

Prime Highlights

  • Stellantis is relaunching the Jeep Cherokee after a three-year break, marking Jeep’s first traditional hybrid and most fuel-efficient gas-powered SUV in the U.S.
  • The Cherokee is expected to be a key driver of Stellantis’ 25% U.S. sales growth target for 2026.

Key Facts

  • The 2026 Cherokee features a 1.6-liter turbo four-cylinder hybrid engine with 210 horsepower, standard four-wheel drive, and 140 safety and security features.
  • Pricing starts at around $37,000, with the Cherokee Laredo model expected to account for 36% of sales.

Background

Stellantis is banking on the return of the Jeep Cherokee to boost its U.S. sales, marking a critical step in the automaker’s ongoing turnaround. The SUV returns to the compact and midsize segments after a three-year hiatus and enters the market as Jeep’s first traditional hybrid and its most fuel-efficient gas-powered vehicle in the U.S.

“This is a critical vehicle for us,” said Richard Cox, Jeep senior vice president of brand operations. “It expands our reach with this level of powertrain, fuel efficiency, and capability.”

The 2026 Cherokee is arriving in U.S. dealerships as Stellantis targets a 25% increase in U.S. retail sales for 2026, aiming to sell roughly 1.15 million vehicles.

Jeep narrowly reported its first annual sales increase since 2018 last year, rising less than 1% to 593,401 units. However, Stellantis’ overall U.S. sales fell 3% in 2025, marking its seventh consecutive yearly decline amid a troubled push into electric vehicles and higher prices under former CEO Carlos Tavares.

Dealers are optimistic about the Cherokee’s impact. Sean Hogan, vice president of Sierra Auto Group, said, “We’ve been missing Cherokee. It’s huge to us and key for turning the volume back on and bringing in new customers.”

The Cherokee is currently produced at Stellantis’ Toluca, Mexico plant, which also builds the Compass and Wagoneer S EV, with plans to expand U.S. production next year. Analysts expect Jeep’s U.S. sales to rise roughly 10% this year, led by the Cherokee.

The hybrid SUV has a 1.6-liter turbo four-cylinder engine with 210 horsepower and 230 lb-ft of torque. It comes with standard four-wheel drive, large interior screens, and 140 safety and security features. Jeep estimates the Cherokee will achieve 37 combined miles per gallon, including 39 mpg in the city and 35 mpg on the highway.

Pricing starts at around $37,000, with the $39,995 Cherokee Laredo expected to be the top seller. Stellantis aims to compete directly with the Toyota RAV4 and Honda CR-V, reclaiming customers who had left the brand in recent years.