depends on the year. on the 2003-2006 matrix, the XRS came with a more powerful engine, a 6-speed manual transmission, and rear disc brakes. on the 2009+ models, the XRS and XR share the same engine/transmission options, but the XRS comes with larger wheels and an independent rear suspension. The XRS has never been available in AWD while the XR has.
Note to US readers, the 09+ Matrix S is still called the XR in Canada.
There are also some cosmetic differences in the 09+ models including the rear spoiler design.
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