Subaru, the Japanese car maker best known for its all-wheel drive vehicles, introduced a new version of its Outback wagon as well as an all-new Outback sedan. Built on the same chassis used by company's popular Legacy station wagons, Outbacks combine the all-wheel drive of larger off-road sport utility vehicles with the size and handling of traditional cars, the company said.

In 1998 Subaru sold 90,000 vehicles in the United States and expects similar volume in 1999. The two new Outbacks likely will account for nearly two thirds of that, said George Muller, president of Subaru of America Inc.

The Outbacks feature more powerful headlights, dual airbags, optional seat mounted side airbags, stronger body frame, and increased cargo space.

"We believe the concept works and it works for the consumer," said Muller of Subaru's devotion to smallerall-wheel drive vehicles. He was so optimistic on the demand that sales in this market segment by all automobile companies could swell to one million vehicles annually.

Hyundai Motor America will soon join the sport utility vehicle market with its Santa FE. The all-wheel drive Santa FE should reach showrooms in the spring of 2000. Taller and more rugged in appearance than the Subaru Outback, company literature boasts the Santa FE has the ride, fuel economy and comfort of a car.

"The hope is it will drive like a car with all-weather capability," said Finbarr O'Neill, chairman of Hyundai Motor America.

Designed exclusively for the North American market, O'Neill said a fully-equipped Santa FE should sell for less than $20,000. It will compete with Isuzu Rodeo, the base model DaimlerChrysler Jeep Cherokee and Subaru Forester, Honda CR-V and Toyota RAV4.

Nissan North America may add another vehicle to the SUV parade with a concept pickup called a "Sport Utility Truck." Featuring four-doors and short cargobed, the SUT combines the people-hauling ability of a car or van with the cargo hauling of a pickup.

No construction timetable was given, but Jerry Hirshberg, president of Nissan's US design studio, has said it could move into production quickly.

The Lincoln Mercury-division of Ford Motor Co. unveiled a small concept car that according to the company "blurs the boundaries between a car, a truck and a sports utility vehicle."

The (my) mercury is a five-door, five passenger vehicle the company billed as being able to "go anywhere, do anything."

The passneger compartment is surrounded in amber tinted glass, which J Mays, Ford's vice president of design, said was taken from the amber sunglasses favoured by the young adults the company is targeting.

A rear hatchback opens widely to provide cargo carrying ability similar to that of a small pickup.

"We feel this is the future of Mercury design," said Mays. "A modern coupe with all the modern attributes of a truck or SUV."