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The 2016 Discovery Sport, which goes on sale this spring, marks a new direction for Land Rover. It’s part of what will become the Discovery sub-brand that is aimed at versatility while Range Rover models focus on refinement. Both model ranges will share Land Rover’s tradition of offering go-anywhere capability.

The replacement for the outgoing LR2, the Discovery Sport shares its engine and basic structure with the Range Rover Evoque. However, compared to that very stylized vehicle, the Discovery Sport is more conservatively sculpted and 10 inches longer. It also offers a small third-row seat for “5+2” seating.

Our two-day journey of Iceland began with a loop on the “pipeline road,” which started out covered in snow that soon turned to ice. On day two, we headed north, navigating between the boundaries of the North American and Eurasian tectonic plates, then stopped at one of the ice huts that dot the countryside to provide shelter for hikers in case of a blizzard. After driving through the Cold Valley between the Porisjokull and Ko glaciers, we turned west toward the coast, where the road became crushed volcanic rock and snow gave way to patches of grass. We forded the Hvita river on the valley floor, then continued on a downhill drive through the “whale fjord,” which afforded beautiful views. Finally, we encountered paved roads as we approached the end of our tour in the modern city of Reykjavik.

To handle the icy, snowy roads of Iceland, Land Rover outfitted the Discovery Sport with studded winter tires. Those tires teamed up with Land Rover’s Terrain Response system to help the Discovery Sport handle everything from snow-covered volcanic rock to the paved roads of Reykjavik. For most of the two-day test run, we drove with the Terrain Response system in the Grass-Gravel-Snow setting, which slows the throttle response, changes the shift points, and heightens the electronic stability control, all-wheel drive and anti-lock braking systems to move power to the wheels with traction. Depending on the amount of traction, it may start the vehicle in second gear as well. Terrain Response did its job, getting us underway with ease and maintaining traction on Iceland’s slippery surfaces.

But the Discovery Sport needed more than just traction. Steep approach and departure angles helped it clear snowdrifts and other obstacles; 23.6 inches of water-fording capability was more than enough to keep the vehicle sealed during a shallow river crossing, and Hill Descent Control helped keep it under control while crawling down steep slopes. In short, the Discovery Sport handled water and snow conditions that would make most vehicles find an alternate path.

Once we found paved roads, the Discovery Sport balanced off-road prowess with on-road comfort. It offers nimble moves and a stable, planted ride. It changes direction willingly and leans very little in turns. The steering is fairly quick and nicely weighted, and the brakes are strong but sometimes a bit grabby. The suspension also does a fine job of soaking up most bumps.

The 240-horsepower 2.0-liter turbocharged four-cylinder is a peppy, willing engine that offers good power off the line and has plenty in reserve for passing on two-lane roads. Land Rover says 0 to 60 mph arrives in 7.8 seconds, but it feels even quicker. We detected no turbo lag and found that it worked well with the responsive nine-speed automatic transmission, whether shifting automatically or through the standard steering wheel paddles.

While the Discovery Sport isn’t as focused on luxury as its Range Rover brethren, the interior environment is a luxury grade above Jeep Cherokee. Soft-touch materials cover most every surface the driver may touch, and leather upholstery is standard. The front seats are roomy and comfortable, and the second row is quite versatile. It slides forward and aft up to 6.3 inches, enabling plenty of legroom, and the seatbacks recline to improve comfort. The available third row is nice for bragging rights, but it’s just for small kids.

With pricing that starts just under $38,000, the Discovery Sport strikes us as a value buy in an otherwise luxury portfolio. It doesn’t offer the V8 power, luxury cachet or billy goat off-road prowess of the brand’s larger SUVs, but it’s still quite capable off road, and it is a far better value than those vehicles, making it a fine choice for small families.

2016 Land Rover Discovery Sport

Type: Compact crossover SUV

Price: $46,495

Base: $37,995

MPG: 21 mpg city/28 mpg highway

Engine: 240-horsepower 2.0-liter turbocharged four-cylinder

Transmission: 9-speed automatic

Parting shot: The best value in the Land Rover lineup, the 2016 Discovery Sport is a fine choice for small families who like to trek off the beaten path.