Fresh on the market this week is the new Jeep Cherokee, a stylish version of what is one of America’s most iconic 4x4s. Fiat took over Jeep when it acquired Chrysler and there’s more than a hint of Fiat influence in the Cherokee.

It has style and good driving features, as well as a modern design. What remains is the badge and a version of the Jeep front grille. Under the skin, much of the Cherokee is Fiat.

The engine is a Fiat Power Train 2.0-litre turbo-diesel engine that’s new to the Jeep brand. It works well in the Cherokee, delivering plenty of power. There are two power output levels, 138bhp or 168bhp, and it was the higher one that I drove last week. Jeep is also offering the Cherokee as an entry level two-wheel-drive (4x2) version in addition to four-wheel-drive (4x4) models. The engine power remains the same for the two entry models, whether you choose two- or four-wheel drive, as does the engine torque level.

There is a slightly higher ground clearance for the 4x4 model and, somewhat remarkably, the 4x2 version has 200kg more towing power. So if towing is more important to you than off-road work, then the 4x2 version, which is also more economical and cheaper, might be worth considering.

The top-of-the-range Cherokee 4x4 has a nine-speed automatic gearbox and loads of power, but is only marginally faster on paper than the entry level 4x2 versions. It also has the highest towing rating of 2,475kg.

There are differences in running costs between the 4x2 and 4x4 versions. The 4x4 version produces more CO2 and this pushes it into a higher annual road tax band. The tax difference between the 4x2 and the 4x4 is €110. There is also a daily running cost difference.

The range-topping 170bhp model in automatic comes with a fuel economy rating of 17.2km/litre (5.8 litres/100km or 48.7mpg). Like so many other 4x4s, this is close to impossible to achieve. My driving experience over 1,000km gave me a figure of 12.2km/litre (34mpg) – that’s 30% lower than the rated figure.

Even on paper, this is less economical than the likes of the new Nissan X-Trail or the Mazda CX-5. The manual gearbox version and the 4x2 are more economical, and the latter comes with hill start assist and a trailer sway control system as standard.

The Cherokee’s 4x4 system responds to ground conditions without the driver having to do anything. It was matched with the Jeep Selec-Terrain system in the test car. This system offers up to five different four-wheel-drive modes to ensure drivers employ the most suitable settings for the conditions. Using a dial located beside the gear lever, you can choose from the customised settings: auto, snow, sport, sand/mud and rock. The system is claimed to electronically coordinate and optimise up to 12 systems, including the ESC, electronic brake controller and powertrain controller.

I drove the Jeep across stubble, cultivated fields and through modestly challenging gaps. The large, 18-inch tyres were more for road than off-road work and they were fitted to lightweight aluminium wheels. They behaved well, but that was before the heavy weekend rainfall – I’m not sure if I would be as confident then.

Jeep claims that the new Cherokee is one of the safest cars on the road. It has a five-star Euro NCAP rating and has more than 70 available safety features. The car is really a four-seater, as the centre rear seat is very small.

Headroom in the rear is somewhat tight, but legroom was fine. The rear seat can slide and tilt for more comfort, but this offers limited flexibility in the available space. The boot is average in size and stores a proper spare wheel in the rear. The bonnet lid is lighter and comes with useful gas lifting struts.

The interior driver’s dash control area is very modern. There is a large touchscreen with easy-to-use controls. This converts to a screen for the reversing camera when you engage reverse.

The optional full-length CommandView sunroof was also fitted. There is an optional charging pad to charge compatible smartphones without the need to plug them in.

The entry price is €36,000 (£29,995 in NI) for the 140bhp 4x2 version. You need to pay €3,500 more for the entry level 4x4.