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  Paul Gover describes the new Jeep Grand Cherokee as 'simple and classy' and 'better than expected'. Photo Gallery

A luxury four-wheel drive is leading Chrysler out of the automotive wilderness.

The all-new Grand Cherokee from Jeep is the first visible sign of the massive shift at the American maker since it emerged from bankruptcy in the USA. It puts the grand into the Cherokee with everything from a new V6 engine to a visible shift in quality and design.

The newcomer is the fourth-generation Grand Cherokee and will reach Australia just before the end of 2010, most likely with a starting price below $55,000. There will be at least two models, the Laredo and Limited, but Chrysler Jeep is also considering a fully-loaded flagship - with everything from a leather-wrapped dash and full-length sunroof to 20-inch wheels - called the Overland.

The importance of the new Grand Cherokee cannot be under-estimated, as it spearheads a product push (in tandem with Chrysler's new 'alliance' partner Fiat of Italy) which will revitalise the brand over the next five years.

In Australia, Chrysler Jeep is aiming to become a 20,000-plus brand in the same timeframe.

"Today is about making a start. The grand is back in Grand Cherokee," says Steve Bartoli, head of international product planning at Chrysler. "We need to reclaim the ground and this product is the first step."

The new Jeep flagship began as a joint project with Daimler, using the basic mechanical platform of the Mercedes ML, and the final quality touches are being made under Fiat. So it's a real hybrid.

The key targets for the car are better on-road driving feel and enjoyment, to combat class leaders including the BMW X5 and Range Rover Sport, improved quality and more advances on Jeep's off-road ability.

BODY AND MECHANICAL

So the new Grand is slightly longer - with significantly more rear-seat space - much more refined inside, but still has a signature five-bar grille, removable front-end aero panel for off-road work, and the new V6.

The engine makes 210 kiloWatts and 347 Newton-metres from 3.6 litres for the new Jeep, but there are plants to fit it - in both larger and smaller capacities - in everything from compact sedans to the powerhouse Wrangler off-roader.

Jeep says the new Grand is more than 140 per cent stiff in the body, claims more than 45 safety and security additions, with fuel economy down by 10 per cent and a touring range of more than 800 kilometres.

It has also tweaked its running gear with a switchable Selec-Terrain system - similar to the one already fitted at Land Rover - with improved Quadra-Lift air suspension on some models, independent rear suspension and a choice of two 4x4 systems.

DRIVING

The first and most obvious improvement in the Grand Cherokee is the cabin layout and quality. Finally, it's simple and classy - and it doesn't squeak.

From the first kilometre it is also quieter, has vastly improved steering feel, and the suspension is compliant and well controlled. The dancing and jumping over broken bitumen which has always been a Jeep signature - and not in a good way - is gone. It's still not as taut as a BMW X5, but it is a massive improvement and will make a big difference for people who only buy an SUV for on-road family work.

The V6 is alright but not outstanding, as the Grand Cherokee really gets to work with the 5.7-litre Hemi V8. Maybe it shades the new motor in an unfair way, but that's the way things are now.

Head off-road and the Grand Cherokee is plain outstanding. The Selec-Terrain system is excellent in a variety of conditions, mostly powdered sand and loose rocks, on a test course in northern California. Like the best of today's off-roaders there is bundles of technology which means the driver mostly just has to steer and maintain a constant accelerator pressure for uphills, then leave the hill-descent system to do its work on the way back down.

The Grand Cherokee is slightly better than expected, and on-message for New Chrysler, pointing to impressive things to come from a US brand which has under-delivered on its potential in recent years.