On the Dash:
• Stellantis targets a 25% U.S. sales increase in 2026, led by the new Cherokee.
• The 2026 Cherokee is Jeep’s first traditional hybrid in the U.S., rated at 37 mpg combined.
• Jeep sales fell 39% since 2018, underscoring the model’s importance to the turnaround.
Stellantis is positioning the return of the Jeep Cherokee as a cornerstone of its effort to reverse declining U.S. sales and regain market share in the nation’s largest vehicle segments.
The 2026 Jeep Cherokee is arriving in U.S. dealerships following a three-year hiatus. The midsize SUV reenters the compact and midsize crossover segments, which together account for the largest share of the U.S. market. It also marks Jeep’s first traditional hybrid model in the United States and the brand’s most fuel-efficient gas-powered vehicle to date.
The launch comes as Stellantis targets a roughly 25% increase in U.S. retail sales to 1.15 million vehicles in 2026. The strategy relies on refreshed and new models, along with pricing and product adjustments aimed at accelerating dealer throughput and restoring volume.
Jeep reported sales of 593,401 vehicles in 2025, up less than 1% year over year and the brand’s first annual increase since 2018. However, that modest gain did little to offset broader weakness. Stellantis posted a 3% decline in U.S. sales last year, marking its seventh consecutive annual drop amid an aggressive shift toward electric vehicles, cost reductions and pricing increases under former CEO Carlos Tavares.
Jeep leadership has identified the Cherokee as a priority nameplate within its turnaround plan. The previous-generation model peaked at nearly 240,000 units in 2018. While Stellantis has not disclosed production targets for the new model, industry forecasters expect it to be a primary driver of growth.
The vehicle is currently produced at Stellantis’ Toluca, Mexico, assembly plant, which also builds the Jeep Compass and Wagoneer S EV and is slated to add the Jeep Recon EV in the second quarter. The facility has an estimated annual capacity of 303,000 vehicles. Plans to expand U.S. production at an Illinois plant are expected as early as next year, which could support higher Cherokee volumes over time.
The 2026 Cherokee is powered by a 1.6-liter turbocharged four-cylinder hybrid system producing 210 horsepower and 230 foot-pounds of torque. The traditional hybrid setup does not require external charging and is projected to achieve 37 mpg combined, including 35 mpg on the highway and 39 mpg in the city. Standard four-wheel drive, large interior screens and 140 standard and available safety and security features are included.
Pricing ranges from about $37,000 to $46,000. Stellantis expects the $39,995 Cherokee Laredo to account for roughly 36% of total sales. The model is positioned to compete directly with high-volume rivals such as the Toyota RAV4 and Honda CR-V, both of which served as competitive benchmarks.
