Aug 26, 04:02 PM

Stellantis Bets on Hybrid Cherokee Revival as $190 Million Fuel Fine Hits

Stellantis has resurrected the Jeep Cherokee after a nearly three-year hiatus, introducing a 2026 model that debuts the brand’s first hybrid powertrain in North America. The compact SUV, now longer, wider and taller, pairs a 1.6-liter turbo-four engine with an electric motor for an estimated 37 miles per gallon and more than 500 miles of range. It will be built in Toluca, Mexico and reach US dealers late this year with a starting price of about $36,995, positioning it between the Jeep Compass and Grand Cherokee. "Hybrid was the perfect piece to round out the rest of our portfolio," Jeep Chief Executive Officer Bob Broderdorf said at the unveiling. The launch is central to new Stellantis Chief Executive Officer Antonio Filosa’s strategy to arrest six consecutive years of Jeep sales declines and rebuild share in the three-million-unit US compact-SUV segment dominated by Toyota’s RAV4 and Honda’s CR-V. The company is also preparing refreshed versions of the Grand Cherokee and Grand Wagoneer and an all-electric Jeep Recon as it looks to counter the impact of steep US tariffs on Mexican-made vehicles. Stellantis’ push comes as the automaker grapples with rising regulatory and technology pressures. The National Highway Traffic Safety Administration disclosed that the company paid $190.6 million this year for failing to meet US fuel-economy standards for the 2019 and 2020 model years, lifting its cumulative penalties to $773.5 million since 2018. Separately, Reuters and other outlets reported that Stellantis has put its Level 3 AutoDrive driver-assistance program on hold because of cost and limited near-term demand, underscoring the challenge of keeping pace with Tesla and Chinese competitors in advanced autonomous features.

Written with ChatGPT .

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Stellantis Bets on Hybrid Cherokee Revival as $190 Million Fuel Fine Hits

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