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The Honolulu Advertiser
Posted on: Sunday, November 4, 2007

Toyota takes a chance with stronger, bigger Corolla

By Ken Bensinger
Los Angeles Times

Hawaii news photo - The Honolulu Advertiser

The 2009 Toyota Corolla emphasizes power and size at a time when the automaker's rivals are focusing on fuel efficiency.

JAE C. HONG | Associated Press

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LAS VEGAS — Has Toyota become a tad complacent?

The Japanese carmaker last week introduced a heftier, wider version of the Corolla, emphasizing power and size instead of fuel efficiency, even as rivals — and consumers — focus on gas mileage.

The all-new 2009 Corolla, which Toyota Motor Corp. says will go on sale in the U.S. in late February, weighs about 140 pounds more than the 2008 model, adds two inches to its waistline and has six more horses under the hood, according to engineers. But it will show little to no improvement in fuel economy, and maybe even a small drop for some versions of the car.

"My feeling is that the mileage of Corolla is already quite good," said Tim Morrison, corporate marketing manager for Toyota Motor Sales USA Inc. He noted that official Environmental Protection Agency fuel efficiency numbers for the 132-horsepower, 1.8-liter, four-cylinder motor have not been released for the new Corolla, but that mileage should be "a little less" than the current model's 26 miles per gallon in city driving and 35 on the freeway.

Corolla is Toyota's second-best selling model after the Camry. But this year, the Corolla has lost ground to the Honda Accord, which is running second in sales behind the Camry. Toyota says it expects final 2007 sales to lag slightly from last year.

Introducing a new model, with different styling and an all-new drive train, is bound to spur consumer interest, analysts say. But with the increasing industry focus on fuel efficiency, and with Toyota on track to sell 185,000 of its hybrid Priuses in the U.S. this year, releasing a bigger Corolla might come as a surprise.

"It's a fairly significant jump in size," said Michael Robinet, vice president of vehicle forecasting at CSM Worldwide. He calculates the weight gain at about 5 percent, which, he says, is significant for a compact car.

Aaron Bragman, an auto industry analyst at Global Insight in Detroit, said that with its expanded profile, the Corolla "is no longer the tiny little efficient compact that it was. ... If you want better mileage, get a Prius."

In Robinet's view, the larger Corolla reflects Toyota's desire to make a roomier car that could almost creep into the midsize category. Seen in that context, no significant loss of mileage with more horsepower is "something to brag about," he said.

For Toyota, the question is whether consumers will react positively to that ecological holding pattern in a highly competitive small-car marketplace populated with models such as the Mazda 3 and Honda Civic, which gets one mile per gallon better than the current Corolla on freeway driving.

Toyota introduced the new Corolla, which will come in five versions — including one with a larger engine — at the Specialty Equipment Market Association automotive show in Las Vegas. It also debuted its redesigned Matrix, a small car aimed at a slightly younger market than the Corolla.

Despite a late first-quarter release date, Toyota said it expected to sell 70,000 Matrixes next year, significantly more than the current year model, which it expects to reach between 55,000 and 60,000 sold. Toyota said it would not release pricing information for either model until early next year.