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Jeep Cherokee Set to Relaunch as Hybrid SUV in 2026
The Stellantis Auto Group is bringing back the Jeep Cherokee after a three-year hiatus, reimagined as a larger hybrid SUV.
By Alice Caroll | DETROIT – 2025/08/23 08:35:34
The Stellantis NV car group is preparing to relaunch the jeep Cherokee after a nearly three-year break. The new model will be a larger hybrid SUV, aimed at strengthening their position in the American market.
According to Bloomberg, Jeep is aiming to “regain land in the SUV segment” after experiencing sales decreases in the United States for six consecutive years. Former executive director of Stelantis, Carlos Tavares, had temporarily suspended the production of the Cherokee model in 2023 as part of a production relocation plan. This left Jeep without a representative in the compact SUV segment, which sees about three million units sold annually, according to Bloomberg. The Honda CR-V is a major player in this segment.
What to Expect from the New Jeep Cherokee
The relaunched Cherokee, slated for 2026, will feature increased dimensions, positioning it to compete with larger SUVs like the Toyota Highlander and Honda Pilot, Bloomberg reports. The company hopes to attract new customers interested in the broader SUV segment.
The 2026 Cherokee model is expected to hit the market by the end of this year with a starting price of approximately $37,000 (including transport taxes). This is about $3,000 more expensive than the base hybrid RAV4 but roughly $4,800 cheaper than the starting price of the Toyota highlander.
Jeep is trying to “regain land in the SUV segment” after six consecutive years of sales decreases in the United States.
The model will initially launch with a hybrid-electric propulsion system, boasting an estimated consumption of 6.4 l/100 km in mixed driving conditions and a range of over 800 km, according to Stelantis. While the SUV will be produced in Mexico, perhaps subjecting it to tariffs, the four-cylinder turbo engine will be manufactured in Michigan. Jeep CEO, Bob Broderf, explained that the decision to first introduce the hybrid version was made to capitalize on the strong demand for fuel-efficient vehicles without notable price increases or extensive retooling.
Following the Cherokee’s debut, Jeep is also planning updated versions of the Grand Cherokee, its best-selling model, and the Premium Grand Wagoneer SUV. Additionally, the launch of a completely new model, the all-electric Jeep Recon SUV, is expected in 2025.
