Perhaps it's understandable why Chrysler Jeep haven't been at the forefront of the diesel revolution. With Stateside domestic gasoline prices still hovering around £1.04 per gallon, the impetus for diesel has been left to farther flung offshoots of the Jeep empire. Much changed with the merger between Daimler and Chrysler, allowing Jeep access to Mercedes' diesel expertise and the result has been some decent diesel engines, for us at least. Take the 2.8-litre CRD fitted to the latest version of the Cherokee 4x4.

Most UK customers plump for a CRD diesel engine when specifying their Cherokee. The first unit to be offered was a 2.5-litre engine that struggled to move the Cherokee's bulk with any great alacrity. To rectify this issue, Jeep slotted a more powerful 2.8-litre version above it, now the only diesel unit Cherokee customers can buy. While this engine performed well, it created relatively high emissions and could also have used a little more low end shove. Step forward the revised 2.8 CRD unit. This latest common rail engine uses an electronically controlled variable geometry turbocharger to improve the control of boost pressure, reduce emissions and improve full-throttle torque and acceleration. The injectors have also been improved to burn fuel more effectively.

This unit is fully Euro IV compliant, so business users looking for an alternative to the usual BMW 3-Series/Audi A4 fare could well represent a significant bulk of the Cherokee's sales - something that could never have been said of the old car. Also making a debut is the six-speed manual transmission. This promotes relaxed cruising and will be the choice for drivers looking to get the full benefit of the engine's power output. The 161bhp total may not sound a huge amount but the torque figure of 295lb/ft shows that the CRD unit can stump up some major league muscle. A five-speed automatic option is also available should you want the software to do the thinking for you.

"The exterior packaging may be 100% stars and bars, but the beating heart of the Cherokee is firmly European"

The latest Cherokee models feature an advanced ESP (Electronic Stability Program) system that's designed to maximise on-road traction. The ERM (Electronic Roll Mitigation) function uses the ESP sensors to anticipate if the vehicle is entering a potential roll situation and goes to work in order to counter this threat. The ESP system fitted to the latest Cherokee has been developed in conjunction with industry leaders Bosch and continuously compares the actual behaviour of the vehicle with pre-programmed reference values. The moment the car deviates from a normal pattern of behaviour, the ESP system intervenes with a combination of braking and engine power reduction, counteracting the critical rotational movements that occur in the very first moments of a spin. The set-up works particularly well on the wet, snow-covered or gravel roads that owners will routinely encounter.

While we're on the subject of traction, what's not instantly apparent to the casual observer is that the petrol-engined Jeep Cherokee V6 and this CRD diesel variant feature completely different four-wheel drive architecture. Whilst the 3.7 V6 version uses Selec-Trac full-time four-wheel drive, the CRD diesel uses the Command-Trac transfer case that runs in rear wheel drive mode in normal conditions. Ride quality has been improved enormously, due in no small part to a revised suspension system that replaces the ancient solid rear axle setup that the old model employed. Independent front suspension is a first for a Cherokee, as is a unibody construction, ditching the traditional separate ladder-framed chassis. At this point, the purists will probably be crying into their Buds, thinking that Jeep has sold out, but off-road performance is not markedly diminished. Ultimate wheel articulation is still impressive and Jeep have tested the Cherokee on the definitive off-road course, California's Rubicon Trail. This 22-mile route is so arduous it normally takes four days, but the Cherokee dispatched the Big Sluice, The Rock Garden and Cadillac Hill in 48 hours.

The styling's going to win over a fair few customers, talking many cues from the Dakar and Jeepster concept cars, but spot one in the rear view and it could only ever be a Jeep or a Suzuki Jimny on nandrolone. Although it looks compact, this second generation Cherokee is wider, longer and taller than its predecessor with resultant benefits in terms of passenger space. Front seat passengers fare much better than in the old first generation Cherokee, a car that somehow managed to pull off the 'big on the outside, small on the inside' trick with puzzling alacrity. Quality is far better than we expect from most US cars with high-grade plastics and a decent standard specification.

After a fairly slow start in terms of sales, the Jeep Cherokee is looking increasingly strong. It's not the most modern product out there but buyers looking for something a bit bigger than a compact 4x4 but without the bulk of something Shogun/Discovery/Landcruiser sized are turning to the Cherokee. Perhaps this rise in popularity has much to do with the improvements in diesel engines. If so, expect Jeep dealers to be busy in forthcoming months.