Jeep lost its edge in the compact to mid-size SUV space since the popular Cherokee ended production in 2023, ending a nearly five-decade run. The two-year absence frustrated dealers and left a gap in the American brand’s lineup just as the competition tightened its grip on this highly competitive and lucrative segment. But finally, Jeep staged a comeback as it unveiled the all-new Cherokee for the 2026 model year at a live event on Saturday in Brooklyn.
Now Jeep is calling the 2026 Cherokee a mid-size SUV, but in practice, it competes directly with compact crossovers like the RAV4, CR-V, Hyundai Tucson, and Kia Sportage. While the Compass sits below it in Jeep’s model lineup, and the Grand Cherokee moves further upmarket, it leaves room for this new model to finally cover the volume ground Jeep abandoned in 2023.
The Cherokee Comeback With Rugged Design
The Cherokee nameplate, of course, carries a long lineage in Jeep’s history. The original 1974 SJ was a sportier offshoot of the Wagoneer back in the day. The 1984-2001 XJ became the benchmark of the segment, introducing unibody construction and redefining what a rugged compact SUV could be. Later versions softened, and the Cherokee lost ground to Toyota’s RAV4 and Honda’s CR-V.
However, with this latest redesign, Jeep aims to recapture the XJ’s magic, featuring a boxy design, upright proportions compared to the outgoing model, and genuine four-wheel-drive hardware, while incorporating the hybrid efficiency that buyers expect today.
New-Age Efficiency With Capability
At the heart of this makeover is what’s under the hood, Stellantis’ first series hybrid in North America, built at the Dundee Engine Plant in Michigan. The 1.6-liter turbo-four pairs with two electric motors and a battery for 210 horsepower and 230 pound-feet of torque.
That places it just below the Toyota RAV4 Hybrid at 219 horsepower and above the Honda CR-V Hybrid at 204 horsepower, though Honda edges Jeep on torque with 247 pound-feet. Efficiency is close as well, with the Cherokee rated at 37 mpg combined and more than 500 miles of range, nearly matching the CR-V’s 37–40 mpg and roughly 530 miles, but trailing the RAV4’s 40 mpg and 580-mile estimate.
But where the Cherokee separates itself is in capability. Unlike the RAV4 and CR-V, which rely on an electric motor to power the rear wheels, Jeep uses a mechanical driveshaft to deliver standard four-wheel drive. That hardware is paired with a best-in-class approach and departure angles of 19.6 and 29.4 degrees, a breakover angle of 18.8, and 8.0 inches of clearance. Add in Jeep’s Selec-Terrain with Auto, Sport, Snow, and Sand/Mud modes. So the Cherokee holds a capability edge even if Toyota leads slightly on overall range.
A Feature-Packed Interior
Inside, design themes include Global Black as standard, Arctic on upper trims, and sustainable touches such as recycled floor carpets and non-leather materials. Cargo space has grown by 30 percent, with 33.6 cubic feet with the seats up and 68.3 folded. This is thanks to the longer wheelbase (113 in vs ~106.6 in), and Jeep says that there is enough room for an extra-large dog crate.
Every trim gets a 10.25-inch digital cluster and a 12.3-inch touchscreen with Uconnect 5, wireless CarPlay and Android Auto, and Jeep Connect One. That bundle also includes 10 years of Over The Air (OTA) updates, smartphone app controls, and SOS calls at no extra cost. Jeep is also pushing software harder this time, with an in-dash AppMarket that supports apps like Geocaching, The Dyrt, and Sudoku, plus connected upgrades like Off-Road Pages Plus.
But standard equipment goes far beyond the screens. Rain-sensing wipers, passive entry, and rear automatic emergency braking are included on each of the four available trims. Safety tech is also a major talking point, with Jeep claiming 140 standard and available features, from Active Driving Assist to Intersection Collision Assist, blind-spot monitoring, pedestrian detection, and Drowsy Driver Detection.
2026 Jeep Cherokee: Availability and Price
Final assembly of the new Cherokee will take place at Stellantis’ Toluca plant in Mexico, and prices have also been announced, with the range starting at $36,995 for the base Cherokee, Laredo at $39,995, Limited at $42,495, and the top-tier Overland sitting at $45,995.
Now the real test comes when the Cherokee hits showrooms later this year, and after a two-year absence, this is a comeback the company that industry analysts will be closely watching. Is a hybrid-only Cherokee with real 4×4 hardware enough to lure buyers from the competition? Jeep’s betting big that it is.
For Stellantis and recently appointed CEO Antonio Filosa, and Tim Kuniskis, Head of American brands and North American marketing and retail strategy, this new Cherokee is far more than another product cycle. Jeep is the company’s strongest U.S. brand, and skipping the Cherokee after 2023 was expensive. The 2026 Cherokee’s hybrid-only return gives dealers the volume product they have been asking for and puts Jeep back in the fight against Toyota and Honda.
Images Source: Jeep
