The return of the Jeep Cherokee to the compact crossover SUV segment in 2026 marks a pivotal moment for Stellantis, following a three-year absence. This strategic hiatus, reminiscent of Ford's Model T blunder that allowed competitors to gain ground, aims to position the all-new Cherokee for success in a dynamically shifting automotive landscape.

The 2026 Jeep Cherokee undergoes a radical design transformation, shedding the curves of its predecessor for a “Hip 2B Square” aesthetic. Design leader Vince Galante drew inspiration from the iconic XJ-generation Cherokee, the model that pioneered the unibody SUV segment. The new KM Cherokee embraces a boxier profile, featuring a squared-off seven-slot grille flanked by U-shaped daytime running lights that evoke the original's rectangular sealed-beams. Standard 18-inch and optional 20-inch wheels are housed within XJ-inspired trapezoidal arches, while the taillamps wrap around the corners with a horizontal orientation, reminiscent of Jeep's jerrycan motif. The upright D-pillar, embellished with a Germanic Hofmeister kink, directly addresses a key complaint of the outgoing KL Cherokee: insufficient cargo room, which has now increased by an impressive 25 percent.

Underpinning the new Cherokee is Stellantis' versatile STLA Large platform, marking a significant departure from Fiat-Chrysler’s Compact-Wide architecture. This change results in a substantial increase in dimensions, including a 6.1-inch overall length stretch and a 6.5-inch longer wheelbase. This growth positions the Cherokee as either the largest compact or smallest midsize SUV on the market, competing with vehicles like the Honda CR-V, Ford Bronco Sport, Toyota RAV4, and Chevy Equinox. The platform's adaptability means the Cherokee could eventually offer battery-electric, plug-in hybrid, or pure combustion variants. Initial launch, however, will exclusively feature an all-new hybrid powertrain. Width is up 1.5 inches, while height drops 0.3 inches, and nearly every interior dimension has been expanded, improving its competitiveness within the class. Jeep has also focused on elevating interior material quality, with top-line Overland models featuring fancy perforation patterns on seat inserts and an “Arctic” interior color scheme available on the top three trims.

For its 2026 debut, the Jeep Cherokee will be exclusively offered with a hybrid powertrain. This system combines a 1.6-liter turbocharged four-cylinder engine with a two-motor planetary combiner hybrid system, storing power in a 1.1-kWh lithium-ion (NCM) battery located under the rear passenger compartment. This specific hybrid design, originally patented by Toyota and later licensed by Ford, is now utilized by Stellantis, taking advantage of Toyota's decision to make electrification-related patents royalty-free through 2030. The engine alone produces 177 horsepower at 5,500 rpm and 221 lb-ft of torque at 2,000 rpm. The net total output for the system is a robust 210 horsepower and 230 lb-ft, which effectively subdivides the output of the previous Cherokee’s 2.4-liter naturally aspirated and 2.0-liter turbocharged four-cylinder options. Notably, the new Cherokee maintains a respectable 3,500-pound tow capacity, only 500 pounds shy of the old 2.0L turbo. Fuel efficiency sees a dramatic improvement, with estimated EPA city/highway/combined ratings of 42/33/37 mpg, a significant leap from the previous generation's 20-21/26-29/22-24 mpg. This enhanced efficiency provides an impressive estimated combined range of 507 miles from a 13.7-gallon tank, vastly outperforming the previous 15.8-gallon tank's 348-379 miles.

As expected from a Jeep, all-wheel drive is standard on the Cherokee, utilizing an Active Drive 1 system. This system features a power takeoff from the transverse hybrid powertrain, driving the rear axle on demand and disconnecting when not in use to optimize fuel economy. It automatically re-engages when greater traction is required, with clutch slippage managing front-rear binding in tighter turns. While a more focused Trailhawk off-road version with locking differentials is not available at launch, it is widely anticipated to appear in the future. Active Drive 1 offers multiple modes, including Auto, Sand, Snow, and Mud, with torque split varying from 100/0 to 50/50. The minimum ground clearance stands at 8.0 inches, slightly less than the outgoing Cherokee's 8.3-8.7 inches, reflecting a balance with the pursuit of higher fuel economy. Despite this, the 19.6-degree approach angle compares favorably with competitors, and its 29.4-degree departure angle ranks best in class, nearly matching the previous Cherokee Trailhawk's 32.2 degrees.

The 2026 Jeep Cherokee will be offered in four trim grades: Base, Laredo, Limited, and Overland. The Base model starts at $36,995 and comes well-equipped with a standard roof rack, a 10.3-inch digital instrument cluster, a 12.3-inch infotainment screen, and a suite of standard safety features. The Laredo is priced at $39,995, followed by the Limited at $42,495, and the top-tier Overland at $45,995. The launch strategy is staggered, with the Limited and Overland trims going on sale in late 2025, while the more affordable Base and Laredo models will follow in early 2026. This pricing strategy places the new Cherokee at a premium within the compact hybrid SUV segment. For instance, a base 2026 Cherokee costs $2,945 more than a 2025 Toyota RAV4 Hybrid LE AWD (with 2026 RAV4 hybrid pricing still pending). It also stands $2,960 pricier than the Kia Sportage S Hybrid and is significantly more expensive than even off-road-oriented Sportage X-Line models. While not the most expensive outright in some comparisons (e.g., certain Honda CR-V Hybrid trims), the Cherokee’s hybrid-only approach means there's no cheaper gas-only variant to lower the entry point, unlike many competitors. Jeep appears to be banking on pent-up demand and emotional purchases following its prolonged absence from the market. However, without the strong residual value enjoyed by brands like Honda or Toyota, this premium pricing might necessitate future incentives or decontenting to remain competitive.

Comparing the 2026 Jeep Cherokee to its compact hybrid SUV rivals reveals a mixed bag of strengths and weaknesses. In terms of exterior dimensions, the Cherokee is now the longest in its class, benefiting from its STLA Large platform, which also leaves ample space for an in-floor battery. Despite its increased exterior size, it manages to maintain competitive interior passenger space, particularly excelling in rear shoulder room. However, rear legroom surprisingly decreased by 1.8 inches compared to the previous generation. Cargo room sees a significant improvement, with 30 percent more space with the rear seats up and an additional 13.6 cubic feet with them folded, largely due to its squared-off rear styling. Even so, its cargo capacity with seats up (33.6 cubic feet) only bests a few rivals like the Mazda CX-50 and Subaru Forester hybrids, falling short of leaders like the Honda CR-V Hybrid and Toyota RAV4 Hybrid. Off-road clearances are a strong suit, with the Cherokee registering a competitive approach angle and a best-in-class departure angle, reassuring for Jeep enthusiasts even in this mainstream hybrid configuration. The 8.0-inch ground clearance, while not leading the pack, strikes a balance with its impressive fuel economy. The unique powertrain strategy of combining a turbocharged engine with a planetary hybrid system sets it apart, offering a good balance of power and efficiency, especially in city driving where it ties for best-in-class estimated MPG.

In summary, the 2026 Jeep Cherokee re-enters a highly competitive segment with a bold new design, a focus on hybrid efficiency, and improved interior and cargo space. Its premium pricing and hybrid-only launch strategy present a challenge in a market filled with diverse and often more affordably priced options. However, its strong off-road credentials and significantly enhanced fuel economy could carve out a distinct niche for Jeep as it aims to reclaim its position.