One problem related to transmission not engage has been reported for the 1996 Jeep Grand Cherokee. The most recently reported issues are listed below.
Purchased vehicle from mccune Chrysler-Plymouth-Jeep as a previosly owned vehicle that just finished a lease. On 02/08/2000, while driving home from bowling, the transmission would not upshift causing the engine rpms to climb to 4-5,000 rpm's (continued home, 7 miles). Wife next day 02/09/2000, took kids to school and on the freeway to her mom's house ( a distance of only 5 miles), transmission failed to stay engaged, she crept home at about 5-15 mph. This transmission was serviced every 12-18,000 miles. The last service done was at 70,150 miles, (atf+3, filter&gasket)failure happened at 77,740 miles, I was stunned! I called mccune and asked if there was a recall and if there was anything that they can do, I was given an estimate of $2,200+, and was told there was no recall. I took the Jeep down to a local transmission shop (coronas transmission) and was told that the transmission was "burnt up". Went to get a second opinion at aamco, given estimate of $1800+. I was so disappointed that a "top-of-the-line Jeep Grand Cherokee limited 4x4" failed to perform at such a low mileage. In my disheartened state, on 02/11/2000 I traded my pride and joy (took a heavy loss) for a Ford expedition XLT. As much as I loved my Jeep's styling, performance and luxury, I will never buy another.