In addition to the 3.3-liter engine, 2004 V6-powered models were equipped with a new five-speed automatic transmission, replacing a 4-speed automatic transmission, while the 4-cylinder models continued to use the old 4-speed automatic transmission. This year also saw the introduction of the optional third row seat allowing for two additional passengers. The unibody was slightly modified behind the second row seats to include a depression in the trunk floor able to accommodate the optional third row seating. On models without third row seating, this depression was turned into a storage compartment. (Prior to 2004 the spare tire was accessible from inside the vehicle where the third row seating would subsequently be located; beginning in 2004 the spare tire is accessible from underneath the vehicle.) Subtle changes to the front grille, front and rear bumpers, and headlights round-out the major changes for the 2004 mid-cycle refresh.
Beginning in 2006, Highlanders sold in Canada are offered only in a V6 all-wheel drive configuration. Hybrid models are available with part-time four-wheel drive which Toyota refers to as 4WD-i where the rear wheels are powered by the separate electric motor. This system is intended for use on snow and ice, and is prone to overheating the rear electric motor off-road.[5]
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