Jeep Cherokee 2026: Stellantis' 30% Cargo Boost, Hybrid Powertrain to Revive Sales

Stellantis, the automotive giant, has unveiled its latest Jeep Cherokee model, marking a significant move to reverse the brand's six-year decline in sales. The new Cherokee, which features a hybrid powertrain for the first time, is set to be a game-changer in the North American market. This launch is part of Stellantis' broader strategy to revitalize its market position, which has been challenged by declining sales and external pressures such as tariffs imposed by the Trump administration.

The 2026 Cherokee has undergone a comprehensive redesign, aiming to reinvigorate the iconic SUV's image that has been a staple of the Jeep brand for decades. The previous model was discontinued in 2023 as part of cost-cutting measures under the leadership of former CEO Carlos Tavares. The new model introduces Stellantis' innovative 1.6-liter turbocharged four-cylinder hybrid powertrain, offering an impressive single-tank range of over 500 miles. The vehicle is equipped with a "tech-savvy interior" and the new Connect One service package, enhancing the overall driving experience.

Compared to its predecessor, the new Cherokee boasts increased dimensions in length, height, and width, along with a 30% boost in cargo capacity thanks to optimized space design. Jeep brand CEO Bob Broderdorf highlighted the vehicle's competitive edge, stating, "The 2026 Cherokee is a high-performance, competitive mid-size SUV that will help us reclaim our leadership position in the North American market."

The new Cherokee will be priced starting at $36,995, including a $1,995 transportation fee, and is expected to hit dealerships by the end of this year or early next year. The vehicle will be manufactured at Stellantis' plant in Mexico. This launch comes at a critical time for Jeep, as the brand seeks to overcome years of stagnant sales and the impact of tariffs, which are estimated to cost the company 15 billion euros (approximately 17.4 billion USD) this year.

Stellantis' new CEO, Antonio Filosa, who took over in July, has been actively engaging with the Trump administration to mitigate the impact of these tariffs. Filosa, who previously led the Jeep brand, has been focused on reviving the Cherokee series to regain market share. In July, Stellantis released its mid-year financial report, projecting improved performance in the coming months. Filosa emphasized, "Since taking on the role of CEO, my conviction has only grown stronger—we will turn things around at Stellantis, leveraging our core strengths, the creativity and energy of our employees, and the outstanding new products we are bringing to market."