It is an electronically controlled, on demand All Wheel Drive system. There are no locking hubs and no way to achieve full time AWD, at least in the US version. I don't think it's any different in Canada, but I may be wrong. I have a similar option in my Ford Explorer, Auto 4WD, 4WHigh and 4WLow. The Auto 4WD has never kicked in fast enough to counter the slippage it detects. You still fishtail and slide for a distance before it locks the fronts wheels. I hope the Caliber design is better than Fords.