Stellantis Revamps Jeep Cherokee with New Hybrid Model

Stellantis has unveiled a new Jeep Cherokee model with a hybrid engine, marking its first hybrid offering in North America. The vehicle boasts a range of over 500 miles per tank, a tech-rich interior, and a competitive edge in the midsize SUV segment. With a starting price of $36,995 and production set to begin at a Mexican facility, the 2026 Cherokee aims to revitalize Jeep's image and reclaim leadership in North America's largest market segment.

Stellantis, the global automotive giant, has introduced the 2026 Jeep Cherokee, marking a significant step in the brand's strategy to reverse a six-year sales decline. The new model features a hybrid powertrain, a first for Jeep in North America, and aims to revitalize the brand's image and reclaim leadership in the North American midsize SUV segment.

The 2026 Cherokee, set to hit dealerships by the end of this year or early next year, offers a range of over 500 miles per tank, a 30% boost in cargo capacity, and a tech-rich interior. The vehicle's starting price is $36,995, including a $1,995 transportation fee. Production will commence at Stellantis' plant in Mexico, where the company is aiming to mitigate the impact of tariffs, 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 engaged in efforts to mitigate the impact of tariffs. The CEO emphasized that the 2026 Cherokee is a key part of the company's strategy to turn things around, leveraging core strengths, employee energy, and innovative new products. The vehicle's introduction comes as Stellantis seeks to correct past mistakes and reclaim market share in the competitive North American automotive market.

The 2026 Cherokee is larger, wider, and taller than its predecessor and features a newly developed, turbocharged four-cylinder hybrid engine. The engine is capable of delivering over 500 miles of range on a single tank, making it a major step forward in delivering both performance and efficiency for customers. The engine will be produced at Stellantis' Dundee Engine Plant in Michigan, while the rest of the vehicle will be produced in Toluca, Mexico, subject to a 25% import tariff.

The new Cherokee will compete against best-selling midsize SUVs such as the Toyota RAV4, Honda CR-V, and Chevrolet Equinox. The vehicle's entry-level price point and tech-rich interior aim to bring lifelong customers into the Jeep brand, a key enabler to sell the rest of the lineup. The Cherokee's absence from the lineup for the past two years has left a significant gap in Jeep's portfolio, and the brand is eager to fill that gap with the 2026 model.

Despite the challenges posed by tariffs and constrained supply chains, Jeep remains confident in the future of the 2026 Cherokee. The vehicle is designed to be an incredibly capable and competitive midsize SUV, ready to reclaim its territory in North America's largest vehicle segment.

References:
[1] https://www.ainvest.com/news/jeep-cherokee-2026-stellantis-30-cargo-boost-hybrid-powertrain-revive-sales-2508/
[2] https://www.freep.com/story/money/cars/2025/08/21/jeep-cherokee-hybrid-powertrain-new-design/85746026007/