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The Jeep/Eagle division was formed in 1988 shortly after Chrysler bought the American Motors Corporation in 1987.

At the time, Detroit brands like Chrysler were trying to fend off increasing sales by import brands with the creation of their own import-style sales divisions. Eagle began with the Renault-influenced products developed for AMC, the Eagle Premier and the Eagle Medallion. The rest of the division's portfolio was filled out by vehicles from Mitsubishi, the Japanese company that had long been Chrysler's partner in the importation of small, fuel-efficient vehicles.

Jeep sales gave some energy to the Eagle division, but once Chrysler broke off the sport-utility brand and made it available to its own dealers as the SUV boom began in the 1990s, the Eagle brand quickly foundered. Chrysler announced the end of the Eagle brand in November 1997 and the last Eagle Talon, a badge-engineered version of the Mitsubishi Eclipse, came off the assembly line shortly thereafter.