Stellantis' New Jeep Cherokee SUV: A Desperate Attempt to Revive Sales Amid Tariff Costs

Stellantis (STLA) has unveiled a new 2026 Jeep Cherokee SUV, aiming to revive the brand's sales after six years of decline. The redesigned SUV features a new hybrid engine, modern interior, and increased cargo space. The base price is $36,995, and vehicles are expected to arrive at dealerships by year-end or early next year. Analysts have a Hold consensus rating on STLA stock with an average price target of $10.51, implying 4% upside potential.

Stellantis (STLA) has introduced the 2026 Jeep Cherokee SUV, aiming to revitalize the brand's sales after a six-year decline. The newly redesigned SUV features a hybrid engine, modern interior, and increased cargo space. The base price is set at $36,995, with vehicles expected to arrive at dealerships by year-end or early next year. Analysts maintain a Hold consensus rating on STLA stock with an average price target of $10.51, implying a 4% upside potential.

The 2026 Jeep Cherokee, designed to compete in the crowded SUV market, offers a 1.6-liter turbocharged hybrid engine with an estimated system output of 210 horsepower and 230 lb.-ft. of torque [2]. This engine combines a traditional internal combustion engine with two electric motors, providing a more efficient and capable driving experience. The vehicle's hybrid powertrain is designed to maximize efficiency and reduce emissions, with a claimed combined fuel consumption of 15 km/l and an autonomy of up to 800 km.

The SUV's interior has been updated with modern features, including advanced driver-assistance systems (ADAS) such as automatic emergency braking, intersection collision assistance, blind-spot monitoring, and level 2 autonomous driving capabilities. The vehicle also offers a spacious interior, with increased dimensions in length, width, and height, providing more comfort and cargo space for passengers and their belongings.

The 2026 Jeep Cherokee will be assembled at the Toluca plant in Mexico, further emphasizing Stellantis' commitment to local production and supply chain resilience. The SUV is expected to be available in various trims, including Laredo, Limited, and Overland, each offering different levels of equipment, safety features, and interior finishes.

Analysts have noted that while the hybrid engine and modern features make the 2026 Cherokee a competitive offering, the overall market for SUVs remains crowded and competitive. The Hold consensus rating on STLA stock reflects a cautious view of the company's ability to capitalize on the new SUV's potential. However, the 4% upside potential suggests that analysts are not entirely dismissive of the vehicle's market impact.

As Stellantis continues to focus on electric vehicles (EVs) and sustainable technologies, the 2026 Jeep Cherokee represents a significant step in the company's efforts to balance traditional internal combustion engine vehicles with hybrid and electric powertrains. The vehicle's competitive pricing and advanced features position it as a strong contender in the mid-size SUV segment, potentially driving growth for the brand and the company as a whole.

References:
[1] https://autoanalitica.com.mx/noticias/jeep-cherokee-2026-debuta-con-un-motor-hibrido-1-6-litros-turbo/
[2] https://www.greencarcongress.com/2025/08/20250822-stellantis.html