Jeep Cherokee to Drive Stellantis' U.S. Sales Boost

• Jeep sales declined 39% from 2018 to 2025 (973,200 to 593,401 units), while Stellantis posted its seventh consecutive annual U.S. sales decline in 2025 (down 3%)
• The Cherokee features a 1.6-liter turbocharged hybrid powertrain with 210 hp, priced from $37,000-$46,000, with the bestselling Laredo model expected at $39,995
• Production capacity constraints at the Toluca, Mexico plant (303,000 annual capacity shared with other models) may limit initial sales volume until U.S. expansion at an Illinois plant begins next year

Jeep Cherokee Relaunch to Spearhead Stellantis U.S. Sales Recovery

Key Developments:

Stellantis is relaunching the Jeep Cherokee after a three-year hiatus, positioning it as critical to the automaker's U.S. turnaround strategy. The 2026 model represents Jeep's first traditional hybrid and most fuel-efficient gas-powered vehicle, targeting the compact and midsize SUV segments—the largest in the U.S. market.

Sales Targets and Performance:

• Stellantis aims to increase U.S. retail sales by approximately 25% in 2026 to 1.15 million vehicles
• Jeep sales declined 39% over seven years, from 973,200 units (2018) to 593,401 units (2025)
• 2025 marked Jeep's first annual sales increase (under 1%) since 2018
• AutoForecast Solutions projects 10% U.S. sales growth for Jeep in 2026 to 650,000 units
• Previous Cherokee generation peaked at nearly 240,000 units sold in 2018

Product Specifications:

The Cherokee features a 1.6-liter turbocharged four-cylinder hybrid powertrain (210 HP, 230 lb-ft torque) achieving 37 combined MPG (39 city/35 highway). Pricing ranges from $37,000-$46,000, with the bestselling Laredo model at $39,995 expected to capture 36% of sales. Standard four-wheel drive and 140 safety features are included.

Market Context:

The Cherokee directly competes against Toyota RAV4 and Honda CR-V. Production is currently limited to Stellantis' Toluca, Mexico plant (303,000 annual capacity), with U.S. expansion in Illinois planned for next year. The hybrid launch aligns with growing hybrid demand as EV sales flatten. Cherokee production takes priority over the delayed electric Recon model as Stellantis shifts away from aggressive electrification plans.