Prius AWD-e, Corolla Hybrid underscore Toyota's pledge to cars

LOS ANGELES -- Toyota is using its versatile new global platform to underscore a commitment to its powerful sedan and hybrid franchises, even as the overall U.S. market loses interest in those segments.

The proof is on display in Los Angeles this week, where Toyota followed this month's introduction of the 12th-generation Corolla with the first ever hybrid version of the car and an all-wheel-drive version of its signature Prius hybrid, alongside "track-tuned" versions of the Camry and Avalon sedans.

The diversified lineup reflects Toyota's search for niches and frontiers where it can generate incremental volume and higher profits from its core car models, while it sorts out clutter among its small cars. Toyota's North American operations are under pressure to deliver more profit to sustain the parent company's investments in advanced r&d.

Toyota executives credit the Toyota New Global Architecture for opening up its car offerings to greater variety and segmentation.

“The TNGA platform as a strategy has opened us up to just about everything that a manufacturer would want to be,” said Jack Hollis, general manager of the Toyota Division at Toyota Motor North America.

In addition to more creative styling on models such as the Camry, Avalon and RAV4, Hollis said, “it’s allowed us to also create more efficiency and more effective use of space. So while we might not have been able to fit a certain engine into a certain vehicle [before], now it can be. The TNGA has opened almost every single vehicle to growth and innovation.”

In addition to the electrified Prius line, Toyota has long offered hybrid versions of most of its mainstream car and crossover nameplates. But this is the first hybrid for the Corolla, one of the world's best-selling nameplates. It gives hybrid shoppers a more conventionally styled alternative to the Prius' futuristic -- and, of late, polarizing -- design, without much sacrifice on fuel economy. Toyota projects the Corolla Hybrid will achieve at least 50 mpg combined, vs. 52 mpg for the least expensive Prius models.

The addition of the Corolla hybrid caters to "customers who have different tastes in design but the same desire for maximum fuel efficiency," Toyota said in a statement.

The Corolla hybrid will compete in that niche against the Honda Insight, which returned to the market this year as a stylish sedan after two generations of awkward hatchback designs, and Hyundai's Ioniq line of hybrids, which were designed to look normal. The Insight base model is rated at a combined 52 mpg, while the Ioniq's efficiency-tuned base models are rated at 58 mpg combined; their upper trims get fewer mpg.

The Corolla variant uses a hybrid system adapted from the Prius, combining a 1.8-liter four-cylinder gasoline engine with two electric motors and a continuously variable transmission. One motor functions as a generator to recharge the battery, while the other does the same and complements the gasoline engine to propel the front wheels. The nickel-metal hydride battery pack is flat enough to be packaged under the rear seat, freeing up trunk space, and allowing for a 60/40 split folding rear seat.

"There's no compromise in cabin roominess" with the Corolla Hybrid vs. a gasoline model, Toyota said.

The new Prius AWD-e also uses a second electric motor, but this one is mounted beneath the rear seat and drives the rear wheels. It's engineered to provide a burst of power to pull away from a stop and kick on in weather or road conditions where all-wheel drive is needed.

Toyota estimates the AWD-e model, which it projects will achieve combined fuel economy of 50 mpg, could account for as much as 25 percent of annual U.S. Prius sales.

Along with the addition of the awd, Toyota is also renaming the Prius' trim levels to align more closely with the rest of the lineup, with L Eco, LE, XLE and Limited models instead of the numerical grades of the past. The awd will be offered in the middle two grades. Some of the more polarizing design elements of the latest-generation Prius have also been toned down for all 2019 models, including the taillights and front fascia.

The new Camry and Avalon TRD models, meanwhile, are anything but toned down, featuring an aerodynamic body kit, matte-black 19-inch alloy wheels, painted brake calipers, red TRD badging and a flashier interior with red accents. They were unveiled last week, in conjunction with the redesigned Corolla, ahead of the Los Angeles show.

Toyota said it saw a sales spike for sportier SE and XSE trims of the Camry when the 2018 model debuted on the Toyota New Global Architecture, which allowed for better handling. With the TRD variant, Toyota is betting there's still more volume, and perhaps even some passion, to be captured among driving enthusiasts from its conventional sedan nameplates.

The TRD models come with the standard equipment from the Camry SE grade and Avalon XSE, but with chassis enhancements and tuning input from the racing development team. Both are powered by Toyota's 301-hp, 3.5-liter V-6 -- the same as on the Camry and Avalon XSE models -- mated to an 8-speed automatic transmission, with paddle shifters.

Toyota gave the TRD sedans thicker underbody braces to improve torsional rigidity and a suspension package that makes handling and steering more precise. They will arrive in late 2019 as 2020 models.

Traditional sedans and other cars are a fast-shrinking piece of the U.S. light-vehicle market, but they still matter deeply to Toyota, which sold about 680,000 cars in the first 10 months of the year, more than any other brand.

Toyota's sales mix is more car-heavy than the industry overall because of historical capacity constraints on its truck and SUV plants and a complex car lineup that has included a family of Prius models and several leftovers from the shuttered Scion brand.