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Toyota has developed a new full time 4WD system, called “EC-HYMATIC” or Electronically Controlled - HYdraulic Multi-plate clutch Active Traction Intelligent Control. This system permits an automatic torque transfer, depending on driving conditions, for front and rear wheels under control of the speed difference between the two. The system developed consists of a center differential, a speed difference control clutch system employing multi-plate clutch, and a gear set for rear axle drive. The speed difference control clutch system is controlled by a unique electro-hydraulic system using a microcomputer. An extensive use of computer simulations and vehicle test and evaluation has successfully developed an appropriate control strategy for the clutch system. The new 4WD system, EC-HYMATIC, considerably improves handling characteristics, traction performance and stability of a 4WD vehicle.