The automatic transmission that came in the 1996 Jeep Cherokee is the Aisin-Warner four-speed, commonly known as the AW4. It has a reputation as a tough transmission that can take a lot of abuse.
The AW4 transmission requires 4 quarts of Dexron fluid instead of gear oil. Gear oil is for manual transmissions. Putting the wrong type of fluid in will burn up the transmission very quickly.
The gear ratios for the AW4 transmission in 1996 were 2.80-to-1, first gear; 1.53-to-1, second gear; 1-to-1, third (Drive) gear; and 0.75-to-1, fourth gear (Over Drive). The output shaft spine count for 1996 was 23. Earlier model AW4S received a 21-spline output shaft.
The AW4 shares many parts from the Aisin 450-43LE transmission that is available under many Toyota four-wheel drives. The AW4 transmission can also be found behind the AMC 2.5 liter four-cylinder engine and has a removable bell housing for different applications.