In direct answer to Honda’s CRV, Toyota launched the RAV4 in North America for model year 2007. Toyota’s sporty compact SUV received a total makeover for 2006 with an increase in size to accommodate available third-row seating and an available powerful V6 engine. The RAV4 was first introduced in Japan in 1994 and arrived in the U.S. in January 1996. The second-generation RAV4 debuted for the 2001 model year. 2001 to 2006 RAV4’s are powered by a 2.4L 4 cylinder engine lifted from the Toyota Camry. Available in front or all wheel drive, Toyota’s RAV4 battled Honda CRV for sales numbers. The RAV4 styling resonated well with consumers. Small families were particularly fond of the RAV4, due to its versatility and ease of ownership. All Wheel Drive makes the RAV4 a perfect fit for Canadian winters, and Toyota reliability doesn’t hurt either. The RAV4 was available with a 5 speed manual transmission or an automatic gearbox. Options included Alloy wheels, air conditioning, power windows, locks, mirrors, tilt steering, cruise control, keyless entry, CD/MP3 audio and more. The 2001-2005 RAV4 seats five passengers, in 2007 when the model was revamped, the body was enlarged to allow a third seat allowing 7 passenger seating. A V6 engine also made its debut in 2006. The RAV4 continues to be a favourite among small SUV buyers.