Jeep's Misguided Compass

Jeep's poorly executed brand extension into faux 4x4 crossover territory is likely to do more harm than good

by Matt Vella

Editor's Rating:

The Good: Cut-rate price on the base model, upgraded stereo system

The Bad: Sluggish performance, cargo room, visibility, average fuel economy, murky vehicle ethos

The Bottom Line: This Compass is pointed in the wrong direction

Reader Reviews

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Up Front

Here's an understatement: I was not excited to drive the new 2007 Jeep Compass. For a Jeep aficionado, the prospect of a watered-down, road-oriented vehicle is a nonstarter from the get-go. (Disclaimer: I learned to drive in a trail-forging Wrangler.)

But a cool reception from aficionados doesn't matter much. With the new vehicle, Jeep hopes to attract, in the company's own language: "nontraditional Jeep buyers." In other words, purists need not apply since the Compass isn't a trail-capable, true, off-road 4x4 like the rest of the company's lineup. Instead, the Compass is a compact sport-utility vehicle aimed at the growing crossover market, and therefore decidedly tethered to the road.

But can Jeep really afford to overlook that market even if, in essence, such vehicles are more car-like than Jeep-like? Not really. Last year, annual sales in the U.S. of compact SUVs jumped more than 23%. DaimlerChrysler (DCX) anticipates that the overall market will balloon to around 600,000 units a year by 2010, as consumers continue to bail on gas-guzzling giants. And the company wants a piece of the action.

That's not to mention that Jeep is weathering the downturn in SUV sales rather poorly. Its mainline vehicles are all down for the first nine months of the year: the Grand Cherokee by 33.4%, the Liberty by 21.2%, and the Wrangler by 16.2%. Overall sales are down 6.4%, mitigated by steady sales of its new, premium, full-sized Commander.

Enter the Jeep's new cute-ute. Based on the Dodge Caliber (see BusinessWeek.com, 8/29/06, "Full Caliber,"), the Compass trades the serious off-road capability of its brethren for car-like handling and fuel economy. But that puts it in direct competition with the segment's heavies: the Honda CR-V, Toyota RAV4, Hyundai Tucson, and Ford Escape.

So how can a newcomer hope to compete? Price, of course. The bare-bones, front-wheel drive Compass costs $15,425, undercutting some Asian competitors and even Ford by around $5,000. Unfortunately, adding a few basic options, including four-wheel drive, causes that advantage to all but vanish.

My test car, the top-of-the-line Limited edition with four-wheel drive, weighed in at $23,350 with a $560 destination charge. That version features 18-inch aluminum wheels, fog lamps, heated leather seats, keyless entry, and a lot more. On top of the $21,180 base price, Jeep threw in a $460 premium sound system and a $1,150 "AutoStick" automatic transmission.

At that price the competition is tough. A similarly equipped Honda CR-V—a model that thoroughly outpaces the Compass in handling, reliability, cargo room, ride, and cabin quality—costs a mere $1,670 more, and an American-made Ford Escape, which has similar advantages, carries a premium of under $3,000 more. Meanwhile, a Toyota RAV4 that can be outfitted with a third row of seating and comes with that company's bulletproof reliability record runs just over $2,700 more. Any of these is a much better car.

And that, not the lack of the true off-road prowess synonymous with the Jeep brand name, is the real bad news. The Compass, which is intended to take the nameplate in "new directions," can't hold its own.

Behind the Wheel

The Compass comes with one engine option, a 2.4-liter, 4-cylinder engine that pumps out 172 horses. On paper, that's better than similar offerings from Ford (F), Honda (HMC), and Toyota (TM). But in practice it all feels unrefined and underpowered on the road, especially merging into fast-moving traffic or climbing steep grades. Neither the engine's sound (noisy, rickety) nor its pickup inspire much confidence.

The Compass does deliver on crossover promises of a smooth(er) ride and car-like handling.