Jeep has brought back the Cherokee, discontinuing its gas-only option and reintroducing it exclusively as a hybrid SUV for the 2026 model year. This new Cherokee is larger, wider, and taller than its predecessor and is powered by a newly developed turbocharged four-cylinder hybrid engine, boasting a range of over 500 miles on a single tank. The base model starts at $36,995, including destination, while the high-end Overland package costs $46,995.
This move comes after the Cherokee was discontinued in 2023 due to dwindling sales. Jeep views the reintroduction of the Cherokee as a correction of a past mistake, as the midsize SUV segment is a crucial part of its portfolio. Company officials noted that not having the Cherokee in the lineup for two years hurt the brand, especially as it competes with best-selling midsize SUVs like the Toyota RAV4, Honda CR-V, and Chevy Equinox.
In a broader strategic shift, Stellantis, Jeep's parent company, is phasing out its plug-in hybrid (PHEV) lineup, including the popular Wrangler 4xe and Grand Cherokee 4xe, starting with the 2026 model year. These PHEVs, despite being top sellers, faced recalls in November due to software issues and battery fire risks. Stellantis stated it is evaluating its product strategy to meet evolving customer needs and regulatory requirements, implying a shift away from PHEVs towards conventional hybrids and extended-range vehicles due to quality problems and lagging consumer demand for electric vehicles.
The new Cherokee is designed to be more sophisticated and efficient, with a driving experience compared to a Toyota hybrid. It's positioned as a less expensive alternative to the luxurious Grand Cherokee, aiming to attract new customers into the brand's ecosystem. A trail-rated version of the Cherokee is expected to be released after the initial launch, further expanding its appeal in the midsize SUV market.
