Foul-weather friends: all-wheel-drive wagons and SUVs combine practicality with all-weather capability.(Cover Story)(Industry Overview)(Evaluation)

People interested in four-wheel-drive vehicles for the extra security they provide in slippery conditions would do well to consider all-wheel drive instead. AWD is simpler and lighter than four-wheel drive, which helps improve fuel economy. In most cases it works just as well as 4WD on slick roads. And unlike the part-time 4WD systems found on many pickups and lower-priced SUVs,

AWD is activated all the time, so there is no need for the driver to judge the road conditions and shift manually to adjust for slippery surfaces. AWD isn't new. Automakers like Audi and Subaru have offered it for years. But the appeal of AWD has gotten a boost from a new wave of car-based SUVs and AWD wagons that have been introduced in the last couple of years. For 2001, 11 new AWD vehicles made their debut. More are due for 2002.

In the July issue, we reviewed four AWD wagons and SUVs in the $40,000 range: the Acura MDX and Lexus RX300, two popular car-based SUVs, and the Audi Allroad and Volvo Cross Country, SUV-like versions of the Audi A6 Avant and Volvo V70 wagons.

This month we assembled a similar group of AWD wagons and SUVs that are a notch down in price. They are a new AWD version of the Volkswagen Passat wagon; the Subaru Outback, an "SUV wagon" that now comes with a new six-cylinder engine; the Toyota Highlander, a new midsized, car-based SUV from Toyota; and the Buick Rendezvous, a new minivan-derived, seven-seat SUV from General Motors. They all use a six-cylinder engine and automatic transmission, and they are priced from $30,000 to $35,000.

THE VEHICLES

The Volkswagen Passat received a mild freshening for midyear 2001, comprising minor styling changes, a horsepower boost for four-cylinder models, and some safety upgrades. We chose the well-appointed GLX, the higher of the two trim lines. The GLX wagon starts at $29,550. It is powered by a 190 hp, 2.8-liter V6. With VW's 4Motion AWD (which is the same as Audi's Quattro system) and a five-speed automatic transmission, it came to $32,925, including destination charge. The CR Wholesale Price, which includes buyer rebates and what the dealer paid after incentives--is $29,402. (All CR Wholesale Prices were effective as of early August 2001.)

New for 2001, the Toyota Highlander is a near relative of the unibody Lexus RX300, but slightly larger and about $6,000 less expensive. It comes with front-wheel drive or AWD, either available with a 155-hp, 2.4-liter Four or a 220-hp, 3.0-liter V6. We bought the better-selling V6 AWD, which starts at $26,495. In the Limited version (which comes with alloy wheels, automatic climate control, roof rack, and power driver seat), and with options such as a sunroof, side air bags, electronic stability control, leather seats, and a stereo upgrade, the price came to $34,595, including destination charge. The CR Wholesale Price is $30,190.

The Subaru Outback is essentially a Subaru Legacy wagon whose rugged body trim and raised ride height allow it to be marketed as a quasi-SUV. The biggest news for 2001 was the addition of a six-cylinder engine, Subaru's first in many years. The H6 is a horizontally opposed "boxer" engine, similar in configuration to the Fours used in other Subarus. The 212-hp, 3.0-liter Six is available only in the Outback's upper trim lines, called L.L. Bean and VDC(for Vehicle Dynamic Control, a reference to the car's electronic stability-control system). We chose the well-equipped VDC, which starts at $31,895. With a couple of minor options, it weighed in at $32,760, including destination charge. The CR Wholesale Price is $28,146.

The Buick Rendezvous was introduced this past spring as a 2002 model. Like the Pontiac Aztek, it's derived from GM's front-drive minivan platform, which provides room for three rows of seats. Power comes from a 185-hp, 3.4-liter V6. Our AWD Rendezvous CXL starts at $27,452. It comes with leather power seats, automatic climate control, rear parking aid, and a roof rack. Additional options such as the third-row seat, sunroof, and a CD player brought the price to $34,882, including destination charge. The CR Wholesale Price is $31,315.

RECOMMENDATIONS

The Passat wagon is an excellent vehicle. It scored virtually the same overall as the similar but costlier Audi A6 Avant. It is roomy and comfortable; has a supple, quiet ride; and handles capably and safely, almost like a sports sedan. Excellent fit and finish and up-to-date safety equipment complete the package. Reliability of front-drive Passats has been average; AWD models are likely to be similar.

If you're looking for a midsized SUV, the refined and well-thought-out Toyota Highlander is an excellent choice. It slightly outscored its costlier cousin, the Lexus RX300. The smooth power-train provides quick acceleration, normal handling is sound and responsive, and the ride is comfortable and quiet. Access is easy, and accommodations are generous. Our one carp is its emergency handling, which was mediocre, even with stability control. Reliability is likely to be top-notch, like that of the RX300.

Its new six-cylinder engine makes the Subaru Outback a little quicker, smoother, and more refined than four-cylinder versions, with essentially no difference in fuel economy. However, premium fuel is recommended for the Six. Like the Four, the Six rides comfortably and handles responsively. The VDC's stability control also improves its emergency handling. The interior isn't as richly trimmed as we'd expect in a $33,000 car, though. Reliability of the four-cylinder Outback has been average; for this six-cylinder version, it's likely to be similar.

The Buick Rendezvous is a well-thought-out vehicle with a few weak links. Like the Acura MDX,…