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Mitsubishi has a hit on its hands with the redesigned Outlander, a compact crossover utility vehicle.

Introduced for its second generation just last year, the vehicle has posted sales gains of 136 percent for calendar year 2007 through November, making it one of the hottest-selling models in the burgeoning compact sport utility segment.

To build on that success, Mitsubishi is introducing two new models of the Outlander for 2008, including the new generation’s first four-cylinder version, the entry-level ES, and a new sporty, uplevel four-cylinder model, the 2.4 Special Edition or SE.

Built on Mitsubishi’s new global small-car architecture, the Outlander shares its underpinnings with the Lancer compact sedan, also completely redesigned for 2007.

Lancer sales are up 61 percent this year, and along with the Outlander and the sporty Eclipse sport coupe/convertible, the Lancer is helping drive a much-needed renaissance of the Mitsubishi brand.

The automaker, which began building cars in its home country of Japan 90 years ago, just celebrated its 25th anniversary selling vehicles in the United States.

The company’s overall sales for 2007, also through November, are up 13 percent, said Bryan Arnett, Mitsubishi’s U.S. product manager for the Lancer and Outlander. Those gains have come in a weak auto market in which several key automakers have reported lower sales from the year before.

With the new four-cylinder engine – and its accompanying better fuel economy – Mitsubishi hopes to increase Outlander sales even more. When introduced last fall, the redesigned model came only with a V-6, while the previous generation was offered only with a four-cylinder.

Mitsubishi reasoned that American consumers would overwhelmingly prefer a V-6 over a four-cylinder, and the upgrade seemed to make sense at the time. Gasoline prices then were just pushing over $2 a gallon.

Now, though, with gasoline hovering around $3, the four-cylinder makes more sense for those who prefer economy over power. Besides allowing Mitsubishi to offer the Outlander with a lower price, the four-cylinder offers 20 percent better city fuel economy, Arnett said, although the highway ratings for the two are the same.

Four-cylinder models come with a continuously variable automatic transmission or CVT, and are rated at 20 mpg city/25 highway; the V-6 is connected to a conventional six-speed automatic, and has EPA ratings of 17 city/25 highway.

No manual transmission is available, however.

The four-cylinder engine is a new 2.4-liter that came from a joint development effort among partners Chrysler and Hyundai. It’s rated at 168 horsepower and 161 foot-pounds of torque. That compares with 220 horsepower and 204 foot-pounds of torque for the 3.0-liter V-6.

This is not a stripped-down vehicle. Standard equipment on the base 2.4 ES includes electronic stability and traction control, air conditioning, an AM/FM/Compact-disc audio system with six speakers, front seat-mounted side air bags and side-curtain air bags for all rows, cruise control, four-wheel disc antilock brakes with electronic brake-force distribution, power windows/mirrors/door locks with remote, and an engine-immobilizing security system.

The 2.4 SE model will have lots of additional standard equipment, including 18-inch aluminum-alloy wheels, a 650-watt Rockford-Fosgate audio system, chrome outside door handles and side sills, exclusive interior door-panel trim with chrome handles, the FAST key entry/start system (the key remains in the driver’s pocket or purse), high-contrast gauges, mesh fabric seats with leather bolsters, and magnesium paddle shifters on the steering wheel for manual shifting of the CVT.

No prices have been announced yet for the four-cylinder models, which go on sale early next year. But the 2006 V-6 models start at $21,995 (plus $650 freight).

One reason for the four-cylinder version, I’m sure, is to compete with the hot new 2008 Nissan Rogue, a four-cylinder compact crossover whose starting price is $19,995. I would expect the Outlander ES four-cylinder to be priced to compete with the Rogue.

Others in this class include the Honda CR-V, which leads the segment; Toyota RAV4; Ford Escape/Mercury Mariner/Mazda Tribute; Chevrolet Equinox/Saturn Vue/Pontiac Torrent; Subaru Outback; and Suzuki Grand Vitara.

Front-wheel drive is standard, but all models are available with all-wheel drive.

Unlike the Rogue and most of the other competitors, the Outlander is available with a third row of seating, accommodating up to seven passengers. The others, except for the RAV4, offer seating for only five.

The redesigned Outlander, when introduced last year, brought some features never before seen in this market segment.

They include a unique two-piece tailgate, an odor-neutralizing headliner, and the six-speed automatic transmission with manual paddle shifters on the steering wheel.

Mitsubishi, whose fortunes have been dwindling in the U.S. market over the past few years, needed the Outlander to be a hit to help its dealers get their businesses back on track.

The new Outlander seems to outclass its competitors on just about every front, although the RAV4 does offer more power with its optional V-6 engine (269 horsepower).

As is the trend among SUVs in this class, this newest Outlander is longer, higher and wider than its predecessor. That allowed for more interior space and the addition of the third seat, which is designed hold children, not adults.

The new Outlander also has a wider track, designed to make the vehicle more stable. To aid in stability and prevent rollovers, electronic stability and traction control were added. The vehicle’s roof is made of aluminum and weighs just 11 pounds, helping to lower the center of gravity.

The new multi-link rear suspension, and the placement of the fuel tank and spare tire lower on the body, also have helped lower the center of gravity, and to give the Outlander a cargo floor that is eight inches lower to the ground than the one in the previous model.

The cargo area is longer wider, and higher than before, allowing two bicycles to be carried inside with their front wheels removed. This can be accomplished only with the third seat folded into the floor and the middle seats folded and tumbled forward.

Also unique to the new Outlander is what Mitsubishi calls a flap-fold rear tailgate. The larger portion of the two-piece tailgate – containing the fixed rear window – flips up like a conventional liftgate. A smaller section folds back like the tailgates on old station wagons. It has a built-in flap that covers the gap between the tailgate and the cargo floor so packages can slide in without falling into the gap.

This lowered section of tailgate also serves as a seat or picnic table for a tailgate party, and can hold up to 440 pounds.

The headliner absorbs cigarette-smoke odor and decomposes it into water and carbon dioxide, the automaker said. It’s also designed to absorb and decompose formaldehyde. To further reduce odors, Mitsubishi eliminated adhesives in the interior, instead using “phenol-free felt in the assembly of interior parts,” the company said.

A center-dash storage compartment opens with a push of its lid, and is big enough for small items. Next to that is a large, two-tier glove box, which has a card and penholder in the lower section. There also is a 12-volt power outlet in the tray, with a slot that allows a cable such as that of a cell-phone charger to pass through.

The V-6 models come in LS and XLS trim levels.

An available luxury package for the XLS brings leather upholstery for the first two rows of seats, heated front seats and a power-adjustable driver’s seat.

The warranty is one of the best in the industry. Bumper-to-bumper coverage is for five years/60,000 miles, and includes 24-hour roadside assistance and towing to the nearest Mitsubishi dealer, but only for problems covered by the warranty. An extended powertrain warranty runs for 10 years/100,000 miles, and there is seven-year/100,000 mile anti-corrosion coverage.

The automotive columns of G. Chambers Williams III have appeared regularly in the Star-Telegram since 1995. Contact him at chambers@star-telegram.com.