New for 2007, the Caliber replaces the Neon/SX 2.0 as Chrysler’s entry-level car, but it shares nothing with that discontinued vehicle. It will share its platform with the upcoming Jeep Compass.

Click image to enlarge Images courtesy: Dodge

The Caliber is the first to use the new “world” engines built by GEMA (Global Engine Manufacturing Alliance), a Michigan-based partnership of DaimlerChrysler, Hyundai and Mitsubishi. Three engines are available, all four-cylinders: a 1.8-litre mated strictly to a five-speed manual; a 2.0-litre with a continuously variable transmission (CVT); and 2.4-litre with CVT and Auto/Stick, which produces simulated shift points when manually operated.

The 1.8-litre is standard on the SE and SXT trim lines, which can be upgraded to the 2.0-litre for $1,200; the optional engine/transmission combination also adds anti-lock brakes. The 2.4-litre is used exclusively on the R/T, which is also all-wheel drive, using a system that runs in front-wheel until it senses slippage, whereupon it redistributes torque to the rear wheels.

The base SE includes curtain airbags and driver’s inflatable knee blocker, remote manual mirrors, 15-inch steel wheels, variable intermittent wipers, rear wiper/washer, tilt wheel, 60/40 folding rear seat, removable vinyl cargo area mat, and CD player with auxiliary jack.

The SXT adds chrome grille, power mirrors, power windows and locks with keyless entry, 17-inch steel wheels, tachometer, cargo lamp with removable flashlight, 115-volt outlet, fold-flat passenger front seat, reclining rear seats, driver’s seat-height adjuster, and air conditioning. The a/c includes the “Chill Zone”, which adds a removable rubber mat to one of the two gloveboxes; the mat holds four cans or bottles, and a vent routed into the glovebox keeps the edge on chilled beverages.

The R/T adds four-wheel disc brakes with ABS, cruise control, sport suspension, chrome trim, 18-inch aluminum wheels, fog lamps and illuminated entry.

Both the SXT and R/T can be optioned with a “Sport” package, which includes 17-inch aluminum wheels on the SXT and chrome-clad 18-inch wheels on the R/T, along with trim additions and body-colour centre console cover and seat inserts. All three trim lines can also be optioned with the $395 MusicGate Premium Sound package, which includes a flip-down, boombox-style speaker set in the liftgate; open the hatch, flip down the MusicGate, and you have tunes for your party.

The Caliber is a well-done little hatchback, offering the practicality and roominess of a station wagon with a compact footprint. Although it looks longer, it’s actually shorter, both in wheelbase and overall length, than the Neon/SX 2.0 it replaces. The 1.8-litre is a little underpowered here, but the 2.0-litre works so well that you’ll really only need to go up to the 2.4-litre if you want the rest of the R/T package. The Caliber has a firm ride that transmits road noise, but it handles well for a car with this high a centre of gravity. Expect most buyers to go for the mid-line SXT, which offers the best line-up of features for the price. And stay tuned for the SRT4 version, which will shoehorn 300 horses under that little hood.