At first glance, you might think the LR2 is not equipped to keep up with traditional hard-core 4x4s because it doesn't have a heavy-duty transfer case and low-range gear. But through the miracle of lightning-fast, super-smart electronics and an exceptionally cool Terrain Response nerve center, the LR2 is more than capable of going places no other compact all-wheel-drive SUV could go. To date, Land Rover is the only manufacturer that offers anything like the Terrain Response system, but we'd expect that to change as more people experience it. Simply put, with a rotary dial in the center armrest console, drivers can adjust various electronic systems in the car to match the type of terrain the vehicle will likely encounter. The "normal" or default setting is for typical driving demands when driving city streets and highways: concrete, pavement, driveways, stop and go, etc. However, four alternate terrain settings will allow the vehicle a much wider range of capabilities and changes.
Switch to the farthest right position, and a desert-rock icon appears on the information screen and the transmission will hold gears longer than normal or as you select in SportShift mode, with the traction control set aggressively. It assumes you're in some serious slow-motion, low-traction situation and need the added control. It'll also lock the center differential to provide maximum torque to the front and rear driveshafts.
Dial back over to the grass/gravel/snow setting, which has a snowflake for a dash icon, and the trans will start in second gear, tone down the traction control, and round off any engine horsepower and torque peaks.
Click once more to the sand setting, and the traction control all but eliminates the wheelspin sensor, permitting the wheels to spin like crazy, just the way a dune runner would want racing up and down (and across) dune faces. Likewise, the trans shift points firm up a bit, and the braking becomes gentler as well. The only trade-offs holding the LR2 back from being a trail killer is its limited ground clearance (which actually makes it a demon on the pavement) and more aggressive and taller tires, which would also work against its pavement prowess.
The vehicle has a 4.15:1 first gear and a sophisticated software program that makes the throttle as smooth as silk so it really doesn't need a low-range gear to creep along on difficult trails. Kudos to Land Rover for not building in more weight and complexity when it really didn't need it, especially when considering its direct competitors. Consider the LR2 just about the most playful (and powerful) and versatile little SUV out there, but be prepared to pay for it. Our tester cost $41,400.
(Note: The above discussion specifically focuses on this vehicle's off-road capabilities, as they relate to our Death Valley Torture Test, as printed in the September/October 2008 issue of Truck Trend.)