Stellantis Cherokee revives a legacy model

Stellantis and Jeep unveil a redesigned Cherokee to reverse six years of falling sales while managing tariff costs.

Stellantis bets on redesigned Cherokee to revive Jeep sales

Stellantis unveiled the redesigned 2026 Cherokee on Thursday as Jeep seeks to reverse six years of falling sales. The SUV uses a 1.6 liter turbocharged four cylinder hybrid engine and the company says it can deliver more than 500 miles per tank. Jeep had discontinued the Cherokee in 2023 as part of cost cutting, and the revival aims to reconnect with loyal buyers while filling the gap between the Compass and Grand Cherokee.

Pricing starts at 36 995 dollars including destination fees, and deliveries are expected at dealers by the end of this year or early next year. Stellantis describes the Cherokee as a tech filled SUV with a modern interior and a 30 percent boost in cargo space. The move comes as the group faces tariff costs estimated at about 1.74 billion dollars this year, a challenge Jeep chief Bob Broderdorf says the brand can handle thanks to its global footprint. Antonio Filosa, the Stellantis chief who previously led Jeep, has made reviving the Cherokee a top priority. Wall Street analysts show a Hold rating for STLA with limited upside, reflecting the cautious mood around the broader turnaround plan.

The Cherokee revival is a test of Stellantis leadership as it tries to stitch product momentum to a repaired cost structure. The model aims to fill a mid size niche between the Compass and Grand Cherokee, a move that could boost brand traffic if the design and features meet buyer expectations. Tariffs add pressure on pricing and timing, forcing management to balance incentives with long term value. The focus on a hybrid option and practical cargo gains suggests Jeep is betting on practical appeal over pure sports utility thrill.

Highlights

The road ahead will test price, perception and persistence.