Amid declining sales, Stellantis (STLA) unveils its new Jeep Cherokee SUV

 

With the release of a new Cherokee SUV, Jeep is attempting to revive its sales after six years of declining sales. The manufacturer Stellantis STLA on Thursday

The parent company of Jeep, +5.08% ▲, unveiled the updated 2026 Cherokee, which is outfitted with Stellantis' new 1.6-liter turbocharged four-cylinder hybrid engine that can go more than 500 miles on a single charge. It is important to remember that the Cherokee was phased out in 2023 as part of previous cost-cutting initiatives. Nonetheless, the business expects that its comeback would revitalize its lineup and reunite with devoted

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Remarkably, Jeep characterizes the 2026 Cherokee as a technologically advanced SUV with a contemporary cabin and 30% more load capacity than the previous model. In terms of size, it also falls comfortably between the Jeep Compass and Grand Cherokee, providing purchasers with a mid-size choice that blends comfort and usefulness. Vehicles are anticipated to reach dealerships by the end of this year or the beginning of next year, with a starting price of $36,995 that includes destination fees.

As Stellantis faces more significant obstacles, including as President Trump's tariffs, which are expected to cost the firm $1.74 billion this year, this launch is particularly crucial for Jeep as it attempts to halt its long-term sales downturn. Bob Broderdorf, the CEO of Jeep, claims that the company's worldwide operations allow it to adjust to the increased expenses. Additionally, Antonio Filosa, the former CEO of Jeep and current CEO of Stellantis, has placed bringing the Cherokee back to life a top goal. In fact, he thinks that new models like the 2026 Cherokee set Stellantis up for success.

Looking to Wall Street, the image below shows that analysts have a consensus rating of Hold on STLA shares, based on four buys, ten holds, and two sells assigned over the last three months. Additionally, a 4% upside potential is implied by the average STLA price objective of $10.51 per share.