Set to replace the discontinued Land Rover Freelander, the LR2 is a compact sport-ute designed to go heads-up with the likes of the BMW's X3. Although it goes on sale later this year in Europe, the LR2 won't reach U.S. dealers until next spring, when it will be marketed as a 2008 model, officials told Inside Line. Its main competitors will be the new Acura RDX and BMW X3. On the design front, Land Rover played it safe. Though the LR2 is brand-new, there are plenty of familiar styling cues, reminiscent of the previous Freelander. However, the LR2's nose and tail bring the model inline with the Range Rover, Range Rover Sport and LR3. The new compact SUV uses Ford's corporate C1 platform, which underpins the European Focus and Galaxy/S-Max, as well as the Mazda 3 and Mazda 5 . A variety of Volvo models are also built on the C1 platform, including the new C70 coupe/convertible and the forthcoming sister model to the LR2, the Volvo XC50. European engine options in the LR2 include a new Volvo-designed 3.2-liter straight-six gas unit, good for 229 horsepower, and a Ford-PSA-developed 2.2-liter turbodiesel, delivering 158 hp. For the 3.2-liter variant, there's a new six-speed automatic transmission with sequential shift and sport modes; this particular powertrain team is expected to be the only one offered in the U.S. The LR2 rides on a fully independent suspension with unitized body, so the major emphasis is on "sport" rather on "utility." There are plenty of electronic gizmos, including the Terrain Response system lifted from the LR3 that matches all settings to a given condition, including mud, sand and snow. The lengthy equipment list includes adaptive front lighting, asymmetric rear seats and multizone climate control.