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Jeep Revives Cherokee as Hybrid-Only SUV to Drive U.S. Sales Comeback

Jeep is banking on the hybrid Cherokee to jump-start a U.S. sales rebound after years of declines.

Overview

  • The all-new 2026 Cherokee returns after a multi-year hiatus with a 1.6‑liter turbo hybrid, built in Mexico with its engine assembled in Michigan and standard four-wheel drive.
  • Jeep cites 210 hp, 230 lb‑ft, a claimed 37 mpg combined (6.3 L/100 km), up to 3,500 lb of towing, a 0.335 drag coefficient, and roughly 30% more cargo space than the prior generation.
  • Vehicles are arriving at U.S. dealerships as Stellantis targets a roughly 25% retail sales increase in 2026 to 1.15 million vehicles, with Cherokee positioned as the lead volume driver.
  • U.S. pricing spans roughly $37,000 to $46,000, with the $39,995 Laredo projected to account for about 36% of sales; Canadian pricing runs from $42,290 to $56,290 before taxes.
  • Early test drives report responsive handling but note CVT lag under hard throttle and observed fuel use higher than Jeep’s claim in some real‑world driving.