There's been a lot of media interest in the latest 4.7-litre V8 Overland version of the Jeep Grand Cherokee, but for our money the new CRD turbo diesel is the one that really counts.Chrysler now has access to the 2.7-litre five-cylinder Mercedes-Benz engine as used in the Stuttgart company's own C-Class, E-Class and M-Class models. It's by no means a matter of just shoving that twin-cam, four-valve engine with the variable geometry turbocharger under the Jeep bonnet. Jeep people know exactly what they want for their customers, and they've modified the turbo itself, both manifolds and various other items to suit their own requirements.The result is a diesel engine far better than anything a Jeep model has offered before. In addition, the CRD has the great benefit of a Mercedes automatic transmission, modified from the box used in the same Stuttgart models as the engine.It's a five-speed affair, with the selector movement rather more ponderous in this application than in a Mercedes, but still with that very convenient sideways "tip" shift from fifth to fourth or the other way round.On the test car, there was a noticeable vibration from the centre console when the selector was slipped down a gear and the 2.7-litre engine allowed to rev, which it did with a fruitier sound than the 2.2-litre CRD available in the latest PT Cruiser. It's a deep-throated engine even at tickover.For the UK and Europe, of course, the Grand Cherokee is manufactured at Graz in Austria. Chrysler says that the CRD "demonstrates the optimal balance of American emotion and European rational values", and there's a lot of truth in that. The CRD may have the smallest capacity and lowest power output of any Grand Cherokee, but for peak torque it actually splits the 4.7-litre V8 and the higher-output version of that engine as fitted to the Overland.This 2.7-litre turbo diesel produces a robust 295lb/ft of torque from 1800rpm, and its extra urban fuel consumption figure is around 13mpg better than the gas-guzzling V8s. Out on the road, it has excellent mid-range pull and yet very good flexibility.Dynamically, there's no mistaking the latest 4x4 in a long American line from its M-Class second cousin twice removed. The Jeep barrels along the straights, and there's no denying that a Grand Cherokee has praiseworthy stability on a motorway in high winds. But there's no comparison in ride quality or cornering, either in one bend or through a series. The Jeep was designed principally for American roads, the M-Class, although it's built in Alabama, for European conditions.So how about the "American emotion"? Well, the Grand Cherokee is trimmed and fitted, even on this side of the Atlantic, as the Yanks and Confederates prefer. Much roomier than the smaller Cherokee, the 2002 model comes in the Limited specification - the only one in which the CRD is offered here - with deeply upholstered leather-faced seats of an improved design, rain sensor wipers, 17" alloy wheels, instruments, revised air-conditioning and new side curtain airbags. There's some wood effect trim, but it's quite restrained. In a Grand Cherokee with a black interior, you hardly notice it.The CRD comes as standard with the familiar Quadra Trac II four-wheel drive set-up with transfer box, but there's a £600 optional upgrade to the new Chrysler-patented Quadra-Drive system which is standard on the V8 models. Completely automatic, it adds progressive front and rear differentials, improving stability on poor surfaces and in bad weather, while giving the Grand Cherokee the ability to keep pushing on even when there's traction at only one front wheel.Previous drives in Cherokees of various types have shown that they can cope with far tougher terrain than owners of any new vehicle costing around £30,000 ought to tackle unescorted, unless completely off their heads. The new CRD engine, with its deep-chested torque and ability to trickle along when required, certainly won't dull the Grand Cherokee's off-road performance.It's probably fair to say that the powertrain feels a generation on from the chassis, but there's also a strong tow vehicle here, and the 2002 Grand Cherokee, while admittedly very familiar (as far as Chryslers are concerned) in its styling, remains one of the most impressive looking large-scale 4x4s. And it undercuts many of its rivals by a serious amount on initial cost, while avoiding the eye-watering fuel bills of the V8s. Engine 2685cc, 5 cylinders Power 161bhp Fuel/CO2 29.1mpg / 257g/km Acceleration 0-62mph: 11.2 seconds Top speed 118mph Price £29,295 Details correct at publication date
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