The 132-hp XRS engine has less power than Honda's 140-hp Civic but more than the Nissan Versa's; however, Versa makes its torque earlier in the rev band than the Corolla, so where the Versa feels relatively stout even with an automatic, the Corolla feels it needs to be revved to get much out of it.

There are no issues with smoothness or linearity, just plan on the manual for maximum performance and be prepared to floor the pedal on automatics when getting on the freeway because acceleration will fall off as soon it is out of first gear. Besides making the engine feel more fun and capable, the manual has low efforts, is simple to use, and will save you a chunk of cash at purchase.

The Corolla XRS model's 2.4-liter engine is also found in the Toyota Camry so its added midrange power moves the smaller Corolla quite well at the cost of fuel economy, which is down by 5 mpg compared with the other Corolla models; like the other models, the XRS runs fine on regular unleaded gasoline. The 2.4-liter XRS engine isn't significantly smoother or quieter than the 1.8-liter, it just seems that way since you don't rev it as much. There's no point in pushing the 2.4 to redline as it won't go any faster and never gets any sparkle to it, it just goes, at this point almost a match for the Lancer's standard 152-hp 2-liter but still trailing Nissan's Sentra SE-R.

Contributing to the added speed of the XRS (and somewhat to the fuel economy) are shorter gearing in both transmissions for moving off smartly. Only in highway cruising with the automatic do you gain anything back, as the extra gear in the XRS model's five-speed automatic contributes to quieter cruising. Regardless of the transmission, the XRS does not like to take off quickly on a rippled surface, and the manual doesn't like being rushed into first gear.

The manual shifter is good, not as slick and precise as the Honda Civic but far ahead of the Chevrolet Aveo's rubbery arrangement. Although the Corolla XRS five-speed automatic has sequential shifting on the console lever, it would benefit from wheel-mounted paddles like those on the $16,000 Honda Fit Sport.

As wheel diameter increases so does handling crispness and the potential for ride degradation. The Corolla is much improved for the tautness of ride while maintaining some semblance of comfort, but you won't want anything firmer than the XRS and its 17-inch tires; with a simple torsion beam rear suspension and firm springs it comes back down fairly hard after a bump. If you live in a state known for poor roads, we recommend a test drive on some of them before committing to the XRS.

Antilock brakes (ABS) are standard, and the XRS upgrades to rear discs. The pedal offers good feel and more retarding the harder you push, without any sponginess; only when the ABS is active do you feel any pulsation in the pedal, and that's normal so keep your foot down.

New to the Corolla this year is electric power steering system which matches effort to speed but does not telegraph information from tire to steering wheel as well as some systems like the Honda Civic or Mazda3. In low-speed driving where you expect the wheel to return to straight ahead on its own as it unwinds out of the turn, you will be doing more of the work.

While the Corolla may not match the class-leading Mazda3 for dynamics or crisp response, it is a solid structure that exhibited no squeaks or complaints, even after being aired out over a particularly nasty railroad crossing. Much of this can be attributed to the more crash-resistant body shell.