HOLDEN will next year source two new four-wheel drive wagons from GM Daewoo in South Korea to fill the glaring gap it has in the 4WD market.

The first, based on the GM Daewoo S3X show car, will go on sale in the first half of 2006. Final testing of prototypes is under way in Seoul prior to the start of production later this year.

After years of standing on the sidelines of the booming 4WD segment, S3X will mark the first time that Holden has a competitor for the big-selling Ford Territory and Toyota Kluger.

Like the Ford Territory, GoAuto understands it will be sold in both two-wheel drive (though in this case front-drive) and 4WD versions.

The new model will be powered by the 3.2-litre version of the Holden Alloytec V6 engine made in Melbourne. European models will use the 2.8-litre version of the Alloytec as well as new diesel engines just going into production in Korea.

Holden opted for a smaller-capacity V6 rather than the 3.6-litre Alloytec used in the Commodore because it wanted to achieve a greater balance between fuel economy and performance.

The company is also considering a diesel version for Australia.

The new vehicle will be available with either five or seven seats.

This medium 4WD will be followed by a smaller version based on the Daewoo T2X show car recently revealed at the Seoul motor show.

The range will then be topped up with a right-hand drive version of the Hummer H3, which is to go into production in South Africa.

Holden says its priority is to get the GM Daewoo-sourced 4WDs into Australia as soon as possible, and that the Hummer would probably not appear in this market until 2007.