I don't know that the Cherokee is a direct competitor of any Subaru, but I looked at the brand closely in the last year and they are certainly more capable then the Escape/CRV/Rav4 class vehicles. The Outback, Forester, and Crosstrek all have a solid 8.7" of ground clearance, an always on AWD system that splits power either 50/50 or 60/40 depending on the transmission, and top of the class fuel economy. For people that don't need anything more than good snow capability and occasional light off-road ability, Subaru is a legitimate choice.
So its really a part of the market Jeep wants to be in but so far only offers the Patriot and Compass to. Well see if the new Cherokee fits there as well, but I suspect it will prove to be more capable in some areas and thus not be a direct competitor to Subaru.
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