Stellantis Unveils the New Jeep Cherokee SUV: A Bold Move Amidst Declining Sales – Insights from TipRanks

After several years of declining sales, Jeep is launching a new version of its Cherokee SUV. Stellantis, Jeep’s parent company, unveiled the redesigned 2026 Cherokee. This model features a new 1.6-liter turbocharged four-cylinder hybrid engine, capable of over 500 miles per tank. The Cherokee was previously discontinued in 2023 as part of cost-cutting efforts. However, Jeep hopes this new version will rekindle interest among its loyal customers.

The 2026 Cherokee aims to impress with a modern interior and a 30% increase in cargo space compared to its predecessor. Positioned between the Jeep Compass and the Grand Cherokee, it offers a mid-size option that balances comfort and practicality. The starting price is $36,995, which includes destination fees, and the vehicles are expected to reach dealerships soon.

This relaunch is crucial for Jeep, which is facing longer-term sales challenges. Stellantis is also grappling with significant issues, like the tariffs imposed during President Trump’s administration, leading to costs estimated at $1.74 billion this year. Despite these hurdles, Jeep CEO Bob Broderdorf believes the brand’s global presence allows it to adapt effectively. Antonio Filosa, the new CEO of Stellantis, sees the Cherokee’s revival as a vital step toward recovery for the company.

### Expert Insights

Industry experts emphasize the need for Jeep to innovate continuously to stay competitive. According to a recent survey by Automotive News, nearly 60% of consumers prioritize advanced technology features in their vehicle purchases today. This trend suggests that the tech-filled Cherokee could attract a new generation of buyers.

### Market Overview

On Wall Street, analysts currently have a “Hold” consensus for Stellantis’ stock (STLA). This rating is based on a mix of recommendations: four Buys, ten Holds, and two Sells within the last three months. The average price target stands at $10.51 per share, indicating a potential 4% upside.

As Jeep reintroduces the Cherokee, it faces a crucial test to see if it can regain market share and connect with consumers prioritizing both innovation and reliability. The stakes are high, and the automotive landscape continues to evolve rapidly.



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