JEEP is expanding into new territory with the new Compass - a modern-styled compact Jeep that delivers a package of size, performance and fuel economy.

The £17,990 Compass extends the Jeep brand to compete for the first time in the compact sport-utility vehicle segment and is the first Jeep vehicle to offer fuel economy in excess of 43 mpg. It will be launched in May.

The Compass will also be the Jeep brand's first vehicle with a fully independent suspension for more comfortable on-road ride and handling.

Peter Lambert, managing director of Chrysler Group UK, said "The Jeep Compass is designed to reach younger and female customers who may not have previously considered the brand but value the distinctive Jeep look and see four-wheel-drive as a must-have on their daily drive.

"Customers are increasingly interested in family hatchbacks with four-wheel-drive systems as they offer better handling and enhanced safety on the road.

"The Compass offers a roomy interior, a choice of fuel efficient diesel and petrol engines and an all-new Freedom Drive 4WD system in a package the size of a Ford Focus."

The car operates in front-wheel-drive for 90 per cent of the time and automatically switches to 4x4 when more traction is required.