Game Changer: All-wheel drive

Look beside you in the traffic or up ahead at the school pick-up and you will see them – the ubiquitous urban all-wheel drive.

We’re not talking about rugged, ladder frame-based four-wheel drive wagons or utes here – although there are plenty of them about too – but the type of car-based (unibody) all-wheel drive SUV epitomised by the popular Subaru Outback, which is now Australia’s top-selling new-vehicle type, led by the Toyota RAV4 and more recently, the Tesla Model Y.

Within not much more than a decade, these high-riding, five- or seven- seat family fun machines have pretty much eliminated conventional sedans from the market and set about eating their way into other automotive genres as well.

Ask about the origins of AWD and most suggestions will involve scenes of military conflict, with armoured vehicles churning through sand, mud or snow in pursuit of enemy forces. But no.

To the surprise of almost everyone, the first four-wheel drive motor vehicle was created at a time of widespread peace, by engineers from a nation not known for its extreme driving conditions.

The year was 1903, the manufacturer Spyker and the country of origin The Netherlands. Similar designs followed, but none was more radical or advanced than the Caldwell Vale created in Australia.

Caldwell Vale’s first products were trucks, used in place of bullock teams to transport wool from isolated products. Its next project was a large passenger vehicle which should have reached production in 1915.

That was until an unhappy customer who owned a couple of the company’s 4WD trucks sued after the trucks broke down; an action that sent Caldwell bankrupt.

Throughout the 1920s and ’30s, manufacturers of military equipment toyed with all-wheel drive, but not until World War II did the most iconic of all-terrain vehicles emerge.

The concept for a light, adaptable utility vehicle was devised within the US military and tenders called from local manufacturers. A design from Willys won, but demand from an army at war was so great that Ford with its massive network of factories was enlisted to help with production.

The GPW, or Jeep as it became known, was then deployed wherever US forces saw action – Europe, the South Pacific and South Korea.

Britain saw the possibilities as well, with Austin and Rover building models that were slightly more civilised than the rudimentary Jeep but still exceptional in being able to travel over challenging terrain.

Today, the Sport Utility Vehicle has almost completely replaced conventional passenger cars, and for that we can also give thanks to Willys.

The Willys Overland began life in 1948 as a pick-up truck, but three years later was displayed with station wagon bodywork and sufficient seats to accommodate a large family. Jeep would refine its design until the 1960s when the 4WD Wagoneer was released.

Japan by that time was heavily involved with production of 4WD vehicles and by 1970 Toyota with its FJ55 LandCruiser and Nissan with a long-wheelbase G60 Patrol were dominating the market for go (almost) anywhere passenger wagons.

Where the Japanese models fell short was in refinement and that was a quality that the Range Rover would offer in abundance from 1970.

All-wheel drive passenger vehicles had been trialled by Citroen with its 2CV Sahara and the FF (Ferguson Formula) Jensen. Not until the mid-1970s though did Subaru offer its on-demand AWD system in low-cost station wagons and pick-ups.

These normally drove via their front wheels, but without needing to stop and via the lifting of a single lever, AWD could be instantly engaged.

AWD for high-performance passenger cars came next and brought with it an extreme era of World Championship Rallying.

Audi’s Quattro set the standard and was then challenged by rivals from Lancia, Peugeot, Renault, Ford and others. Extreme speeds brought fatal crashes and a ban on the ferocious Group B cars, but even after they disappeared, all-wheel drive as a traction system for high-performance cars would remain.

Related: What's the difference between AWD and 4WD?