Which Drive Is Right for You?

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com/ticker/' rel='ticker'>GM) is the latest to reshuffle its plants to make way for a new, high-profile rear-wheel vehicle. The company is reportedly investing $660 million in its Oshawa (Ont.) factory to make way for the upcoming Chevrolet Camaro muscle car and possibly two other models.

And the number of rear-wheel drive vehicles could continue to climb. Reports surfaced early this summer that GM was debating whether its struggling Pontiac division could be saved in part by adopting an all rear-wheel-drive strategy to redistinguish the brand as a producer of exclusively sporty, performance-oriented vehicles.

All-Wheel Option

Despite the growth in new rear-wheel vehicles like Ford's Mustang, Dodge's Charger, and General Motors' Cadillac CTS, analysts don't foresee them taking over the market, since rear-wheel drive carries a prestige and performance premium.

Manufacturers stand to gain by offering a mixed portfolio, says Karl Brauer, editor in chief of Edmunds.com: "Real-wheel drive will continue to be used as a premium differentiator. From a practical point of view—commuting needs, for example—there's no way to justify the cost over front-wheel drive."

The emergence of all-wheel drive vehicles has also changed the landscape. Some of the systems in cars built by companies ranging from Audi to Subaru merge the benefits of both rear- and front-wheel setups. Some are even capable of alternating the power emphasis given the driving conditions. A $175,000 Lamborghini Gallardo, for example, can shift power to the rear wheels under heavy acceleration and, if slipping occurs, readjust the distribution. But such sophistication comes at a price.

Buyer's Bottom Line

Both rear- and front-wheel vehicles have adopted systems to mitigate their inherent weaknesses. Front-wheel cars have gotten better at reining in torque steer. Rear-wheel autos, meanwhile, have benefited from traction control and stability technology to improve performance in bad weather.

That's why each buyer must carefully weigh a new car's requirements against its capabilities. Those looking for a low-cost mainstream sedan that's an all-around performer may stick with one of the plentiful front-wheel vehicles. The best-seller list includes imports like the Accord and Camry as well as domestics like the Impala and Focus.

Those interested in a little more performance and better handling ought to look to the new class of rear-wheel drive coming into the market. Muscle-car entrants include Ford's Mustang and Dodge's Charger, while mainline offerings include the Chrysler 300.

Matt Vella is a writer for BusinessWeek.com in New York.