Jeep Revives Cherokee with Hybrid Powertrain, Targets US SUV Market

Stellantis is reviving the Jeep Cherokee with added features and a turbo-four hybrid powertrain. The move aims to reignite sales and strengthen its position in the U.S. SUV market. The Cherokee is a key segment in the U.S. market, and Stellantis hopes to capitalize on its popularity. The new Cherokee is expected to offer improved performance and efficiency, setting it apart from other SUVs in the market.

Stellantis, the global automotive giant, has announced the revival of the Jeep Cherokee, marking a significant strategic move to bolster its position in the U.S. SUV market. The new model, slated for release in late 2025, will feature a 1.6-liter turbocharged four-cylinder hybrid powertrain, aiming to reignite sales and compete with popular SUVs like the Honda CR-V and Toyota RAV4 [1].

The 2026 Jeep Cherokee will debut with a proprietary hybrid propulsion system designed to deliver enhanced performance and efficiency. The system combines a 177-horsepower internal combustion engine (ICP) with a two-motor hybrid transmission, resulting in an estimated system output of 210 horsepower and 230 lb.-ft. of torque [1]. The hybrid powertrain includes a liquid-cooled high-voltage lithium-ion battery with a 1.03-kWh capacity, enabling the vehicle to achieve a single-tank range of over 500 miles [1].

The new Cherokee will also offer a 30% increase in cargo capacity compared to its predecessor, thanks to optimized space design. This enhancement, coupled with a standard all-wheel-drive system and advanced traction management, aims to provide a balance between performance and efficiency [1]. The vehicle's interior will feature Stellantis' new Connect One service package, designed to enhance the overall driving experience [2].

The 2026 Cherokee will be priced starting at $36,995, including a $1,995 transportation fee. It will be manufactured at Stellantis' plant in Mexico, which may result in import taxes into the U.S. The new model is expected to help offset the costs associated with Trump-era tariffs, which are estimated to cost the company 17.4 billion USD annually [3].

Stellantis' new CEO, Antonio Filosa, has been actively engaged in efforts to mitigate the impact of these tariffs and revive the Cherokee series. Filosa has emphasized the importance of leveraging the company's core strengths, employee creativity, and new product innovations to turn around Stellantis' fortunes [3].

References:
[1] https://www.greencarcongress.com/2025/08/20250822-stellantis.html
[2] https://seekingalpha.com/news/4488339-stellantis-bringing-back-the-jeep-cherokee
[3] https://www.ainvest.com/news/jeep-cherokee-2026-stellantis-30-cargo-boost-hybrid-powertrain-revive-sales-2508/