AUTO Mode

WARNING: This page is about a different car, the 2003 Nissan Murano. However, it is still accessible from the selected car via links, so may be relevant.

Electronic control allows optimal distribution of torque to front/rear wheels to match road conditions.
Makes possible stable driving, with no wheel spin, on snowy roads or other slippery surfaces.
On roads which do not require AWD, it contributes to improved fuel economy by driving in conditions close to front-wheel drive.
Sensors determine the vehicle's turning condition, and in response tight cornering/braking are controlled by distributing optimum torque to rear wheels.

NOTE:

When driving in AUTO mode or LOCK mode, if there is a large difference between front and rear wheel speed which continues for a long time, oil temperature of drive system parts becomes too high and AWD warning lamp flashes rapidly. (When AWD warning lamp flashes, vehicle changes to front-wheel drive conditions.)
When driving in AUTO mode, AWD warning lamp may flash slowly if there is a significant difference in pressure or wear between tires. At this time, vehicle performance is not fully available and cautious driving is required. (Continues until engine is turned OFF.)
If AWD warning lamp is flashing rapidly, stop vehicle and allow it to idle for some time. Flashing will stop and AUTO mode will be restored.
If the warning lamp flashes slowly during driving but remains OFF after engine is restarted, the system is normal. If it again flashes slowly after driving for some time, vehicle must be inspected.
When the difference of revolution speed between the front and rear wheel with AUTO mode the shift occasionally changes to LOCK mode automatically. This is not malfunction.