New Jeep Compass SUV looks like shrunken Grand Cherokee

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The Compass looks like a shrunken version of the popular Jeep Grand Cherokee, but has a front end and interior that are similar to the Jeep Renegade subcompact SUV. It’s being built in Brazil to serve the South American market. In North America, the Compass will be built in Mexico and shipped to the U.S. but FCA says no jobs are being lost to Mexico.

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The current Compass is now built at a factory in Belvidere, Illinois, which will get a $300 million investment and 300 additional jobs when it’s retooled to build the Jeep Cherokee midsize SUV. Cherokee production is being moved from Toledo, Ohio, where the plant will build more Jeep Wrangler SUVs.

The Compass debuted in 2006 as a 2007 model just as the old Chrysler was headed into bankruptcy protection. It was updated in 2011 but lagged behind the market leaders, the Honda CR-V and Toyota RAV4.

Compact SUVs accounted for just 7.2 per cent of the U.S. market just a decade ago, but that has more than doubled to 16.5 per cent so far this year, according to the Edmunds.com automotive website. The SUVs appeal to just about all demographic groups, from aging baby boomers who are downsizing vehicles to millennials who like the high seating position and ability to haul outdoor gear.

The Associated Press