Stellantis Unveils Hybrid Jeep Cherokee to Reverse Six-Year Sales Decline

Stellantis has unveiled the redesigned Jeep Cherokee, a strategic move aimed at reversing the brand's six-year decline in sales. The new Cherokee, introduced on Thursday, is the company's latest initiative to revitalize its market position. This model is notable for being the first Jeep to feature a hybrid powertrain and the first hybrid vehicle introduced by Stellantis in the North American market.

The 2026 Cherokee redesign is intended to reinvigorate the iconic SUV image that has been a hallmark of the brand for decades. The previous model was discontinued in 2023 as part of cost-cutting measures. The new Cherokee introduces Stellantis' latest 1.6-liter turbocharged four-cylinder hybrid powertrain, offering an electric-only range of over 500 miles. The vehicle is equipped with a "tech-savvy interior" and the new Connect One service package.

Compared to its predecessor, the new Cherokee has increased dimensions in length, height, and width, with a 30% increase in cargo capacity due to optimized space design. The Jeep brand CEO stated, "The 2026 Cherokee is a high-performance, competitive mid-size SUV that will help us regain our leadership position in the largest segment of the North American market."

The new Cherokee starts at $36,995, including a $1,995 transportation fee, and is expected to arrive at dealerships by the end of this year or early next year. Production will take place at Stellantis' factory in Mexico.

This launch comes as the Jeep brand attempts to overcome years of declining sales. In addition to the six-year sales slump, Stellantis is also grappling with the impact of tariff policies implemented by the Trump administration, which is expected to cost the company 150 million euros (approximately 174 million dollars) this year. The newly appointed CEO, who took over in July, has been actively communicating with the Trump administration to address these challenges.

The CEO, who previously led the Jeep brand, has been committed to reviving the Cherokee series to restore the brand's market share. In July, Stellantis released its mid-year financial report, predicting that performance would gradually improve in the coming months. The CEO emphasized, "In the weeks since taking over as CEO, my conviction has only grown stronger—that we will turn things around at Stellantis, leveraging our core strengths. This is thanks to the creativity and energy of our employees, as well as the outstanding new products we are bringing to market."