My friend bought a 1992 jeep Cherokee Laredo, with the 4.0 inline 6 at 262,000 miles. It was sitting for 6 years before we started work on it. It has an automatic transmission, I believe the AW4. It has a brand new Cat, anf we swapped the old fuel injectors for new 4 port because the engine wouldn't run good, then we put in new plugs. It also has new crankshaft position sensor, and drained 3 quarts of transmission fluid and refilled with the correct stuff. It took a bit but the engine started running with the new injectors and was going strong. There is also a new fuel pump and filter. The problem is it has zero power up hill, and the transmission slips. When we try taking off we will give it gas and it just won't move, then it might start to move a bit and we were able to work it up to 55mph by playing with the gas pedal, it would shift to first grab and jet up to 4K RPM. Then shift and just lose all power. If we stop and try to take off it will struggle to move again then just randomly start to go and lose power again. Is the transmission bad? It's fluid looked like bad motor oil when we drained some.

 

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Please post the inquiry in the XJ forum, applicable to your Cherokee vehicle.