The Toyota Corolla XRS sport sedan was first shown in November 2003. Featuring a newly tuned version of Toyota's 2ZZ dual overhead cam engine and six-speed manual transmission (found in the Celica GT-S and Corolla Matrix XRS), the car should be able to outrace the Ford Focus SVT and Honda Civic Si. The increase in power will be complemented by improved ride and handling, thanks to a sport-tuned suspension and new steering improvements.
* The 1.8 liter engine produces 170 horsepower but only 127 lb-ft of torque - roughly the same torque as the standard Corolla, and ten horsepower less than the same engine in the Celica and Matrix XRS. The engine has been retuned to deliver a broader and stronger mid- range power curve, but continues the variable valve timing and lift system for a turbo-like rise in power starting at 7,000 rpm and going up to redline at 8,200 rpm. The result, along with the Corolla's relatively light weight, is a zero-to-sixty time under eight seconds coupled with good throttle response - and gas mileage of 25 city, 32 highway. We found it much more enjoyable than the Matrix XRS, where the lack of low-end torque hurts everyday responsiveness.

The XRS features a sport-tuned suspension that includes a front connecting rod damper developed by Yamaha. The damper is mounted between the shock towers to produce improved ride and handling without compromising NVH. In addition to the performance damper, the XRS features increased rate coil springs and shocks on all four wheels for improved roll and pitch, and a ride height that is lower by a full half-inch.

The suspension stands on 16-inch aluminum alloy wheels and Michelin performance tires (all other Corollas use 15 inch wheels). It is complemented by a steering system that features a more rigid steering column, producing less vibration and improved response, and a special power steering rack for better feedback.There are also cosmetic changes including sport seats, color-keyed bezel surrounding the grille, silver-colored center cluster and switch plates, a leather-like shift boot with a leather shift knob, and unique badging. Thee Corolla XRS is built at Toyota Motor Manufacturing, Canada (TMMC) in Cambridge, Ontario alongside the Matrix, and started production in April 2004. Annual sales of the XRS are projected at approximately 5,000 units, so it's mainly a publicity piece - something to make the ordinary Corollas seem more sporty, just as aftermarket-modified Civics make the rather dull production Civic seem sportier

The Toyota Corolla XRS is more Celica than Corolla in many ways, with an engine that's happiest above 7,000 rpm, a firm ride bordering on harsh, and a flat black interior; it performs like no other Corolla, and its speed and agility live up to the spoiler on the back. The main feature of the XRS is the 170 horsepower Celica engine, a performance-tuned version of the standard Corolla fare, so it's worth looking at that first. At lower revs, it actually seems less feisty than the base Corolla powerplant, which produces about 40 fewer horses but roughly equal torque.

The XRS also has different gearing, which is fairly similar to the now-departed Dodge Neon ACR. That means the engine is revving high on the parkway, which is probably the main reason why the XRS is rated well below ordinary Corollas in gas mileage at a still-respectable 26 city, 34 highway; and the faster you go, the lower the mileage drops, as engine speed increases. But the XRS will still be responsive in sixth gear, and, indeed, the engine generally seems happy and responsive in higher gears (or, conversely, at lower rpms).

Inside, the normal ergonomic seats and controls were present, albeit a bit stripped-down. The plush fabric of the previous-generation Corollas is gone in the XRS, replaced by a coarse, tough-looking black fabric that grips better and is probably better for high-speed turns. The center console feel is not quite as high-quality as in prior models, and the sunroof cover rattled when in any position other than completely closed, but otherwise the interior seemed well constructed.Our XRS had black on nearly every surface, with some dull silver panels (one around the door

switches on each door, and others at the bottom of the center stack) and a chrome inset on the six-speed gearshift. Twin cupholders up front are fairly primitive but deep enough to work well. The glove compartment has room for more than just the owner's manual, and both front doors have map pockets; there is also a small bin on the left of the wheel, and two compartments under the climate control (these may not be on every model), which could have had rubberized bottoms to prevent rattling, but don't. The optional six-disc in-dash CD with six speakers ($200) has good sound and stereo separation, and is also easy to use, though it has the single-button audio control that is less than ideal for use while driving (press to get to bass, treble, etc., then turn to go up or down five stops). A large LED clock sits in the middle of the center console, and the outside temparature is shown with the odometer. There is a large tachometer, especially useful in this particular car with its "high rpm" program, and gas and temparature gauges.