Inside Rearview Mirror Description and Operation: Compass
WARNING: This page does not describe the selected car, but rather 7 other vehicles, including the 2002 GMC Yukon XL, 2002 GMC Yukon, 2002 Chevrolet Tahoe, 2002 Chevrolet Suburban, and 2002 Chevrolet Avalanche. However, it is still accessible from the selected car via links, so may be relevant.
The mirror uses two magnetic field sensors for compass direction. One sensor is for north and south; the other is for east and west. The mirror supplies a signal and low reference to each sensor. As the vehicle travels with or against the earth's magnetic pull, there will be a change in voltage on one or both sensors. As a result of the change in voltage, the mirror changes the heading on the compass display.