The chassis is certainly capable of handling more output than the 130-hp its 1.8-L 4-cylinder can muster. Sure its up 5-hp from last year's Corolla, but it's still shy of the Hyundai Elantra and Suzuki Aerio, at 140 and 141 horsepower respectively. The standard 5-speed manual improves acceleration over the ultra-smooth 4-speed automatic, despite a handy button to drop it down from 4th and hold it in 3rd gear. Still I couldn't help thinking what it would be like if fitted with the Celica derived 180-hp, 6-speed equipped 1.8-L, now part of the Matrix XRS package. Maybe we'll see the 2004 Corolla 'S' become a true Nissan Sentra SE-R fighter yet?

Just the same, the Corolla's straight-line performance will be more than enough for those whose core values rate the protection of our environment higher. A new catalyst design gives the Corolla a ULEV (Ultra Low Emissions Vehicle) rating. Unfortunately the engines extra power, coupled with a 40 kg (88 lb) increase in overall curb weight, negatively effects the automatic transmissions fuel economy by 5%. Still its 7.0 L/100 km rating is way above average. Things change with manual transmission equipped cars, improving on last year's combined rating from 6.3 to 6.2 L/100 km.

The Corolla's safety features include 3-point seatbelts for all, with the front driver and passenger receiving height adjustable versions with pretensioners and force limiters, plus dual-stage airbags. Front side-impact airbags are optional. Also, the LE comes standard with ABS brakes that include electronic brake force distribution (EBD).