First there was the Jeep Cherokee and then the Grand Cherokee. Now comes the grandest Grand Cherokee to date.

Bearing a name suggestively similar to a certain British luxury import, the new Overland edition of the Grand Cherokee has the price tag to prove that it belongs in such illustrious company. With a base sticker of $36,830, a handful of options can drive the bottom line to nearly $40,000.

Since the Chrysler side of DaimlerChrysler no longer sells luxury cars, the new Grand Cherokee Overland might serve as the closest thing to a flagship in the fleet.

Indeed, the Grand Cherokee rides like a luxury car and offers the creature comforts found only at the top of the market.

Since its introduction as a replacement for the regular Cherokee in 1992, the Grand Cherokee has served as a pace car for the SUV market with such features as the first V8 engine and air bags for driver and passenger. While the venerable Cherokee remained on the scene longer than expected, the Grand Cherokee continued to provoke challenges from virtually every luxury automaker in the world.

To compete with Range Rover and a host of other luxury SUVs, you need power to spare, versatility, strength, comfort and technical innovation. How does the Overland size up?

Start with a 4.7-liter high output engine that makes it the most powerful GC ever sold. The new V8's 260 horsepower and 330 foot-pounds of torque at 3,600 rpm translate to a 15 percent increase in horsepower and 12 percent increase in torque over the previous version. A five-speed automatic transmission that made its debut for 2001 provides a second overdrive gear for better highway fuel economy and reduced engine noise at highway speeds.

The high-output version of the 4.7-liter engine is standard on the new premium Overland model, and available on the Limited. The standard 4.7-liter engine continues to be featured on the Limited, and available on the Laredo model. Laredo continues to offer the 4.0-liter Power Tech I-6 engine as standard equipment.

Because it is a Jeep that actually can withstand off-road duty, the Grand Cherokee's makers placed a high premium on traction. The Quadra Drive system combines the Quadra Trac II transfer case and Vari-Lok axles for performance in tough conditions. With speed-sensing gear attached to the axles, the Quadra Drive system can transfer 100 percent of the torque to one wheel if necessary.

Also standard on Overland is the Up-Country Suspension Group, Skid Plate Group, all-terrain tires and a full-size spare tire with a matching wheel.

In this price range, attraction is as important as traction. The Overland retains the familiar face that made Cherokees famous, updated in grand style. With four exterior colors available, Overland models feature 17-inch machined-rim aluminum wheels, metallic painted side rock rails and unique front and rear fascias.

An interior of dark slate features Redwood burl wood accents, premium suede and leather seats and "Overland" embroidered floor mats. You also get a 10-disc CD changer standard and rain-sensitive windshield wipers. Just set the wipers on automatic and they come on when it rains.

Much of the equipment that comes with the Overland package is offered as options on other versions of the Grand Cherokee. New safety equipment for 2002 includes side curtain air bags to provide head protection for front and rear passengers. A new tire pressure monitoring system is a $150 option on the Overland that offers an additional level of confidence with readouts on the tires in the overhead computer console.

Sensors mounted in the valve stem of each tire, including the spare, transmit information to console. If the tire pressure exceeds or falls below correct levels, a warning appears.

Another innovation comes in the form of optional adjustable brake and accelerator pedals. Using a switch on the instrument panel, you can adjust the pedals to conform with your most comfortable seating position. The pedal position is even included in the "his-and-hers" memory settings.

The air conditioning system also gets an upgrade in 2002 with a thermal expansion valve on the evaporator that improves cooling by up to 10 degrees.

Unlike the Laredo and Limited versions of the Grand Cherokee, the Overland comes only in 4-wheel drive format. Naturally, that translates to rather puny fuel economy, in this case, 14 miles per gallon in the city and 19 on the highway for an estimated annual fuel cost of $1,501.

With the Overland in its fleet, Chrysler's Jeep SUV product line becomes remarkably broad, from the rough-and-tumble Wrangler, to the impressive new Liberty compact and the stylish array of Grand Cherokees.

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WHAT'S NEW: Engine, side-curtain air bags, standard equipment.

PLUSES: Power, comfort, versatility, innovative features.

MINUSES: Fuel economy, cost.

BOTTOM LINE: The most luxurious Jeep ever built.

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