Well of course it's the logical next step. I, along with thousands of auto journalist comrades, have been teasing readers about the prospect since the hot Celica GT-S engine became available. Doing a re-and-re on the Corolla seems like a lot less work to attract younger clientele than starting an entirely new brand, Scion being the brand in question. But I digress.

The XRS' ride height has been lowered by half an inch while each corner features increased rate coil springs and shocks to improve roll and pitch. (Photo: Toyota)

There's actually quite a bit more Toyota has done to its Corolla to make it worthy of the XRS nameplate. Part of its appeal is a sport-tuned suspension with a front connecting rod damper developed by motorcycle (and almost everything else) manufacturer Yamaha. Mounted between the front shock towers, the damper is said to enhance the XRS' ride and handling while keeping noise, vibration and harshness (NVH) levels at bay. The XRS' ride height has been lowered by half an inch while each corner features increased rate coil springs and shocks to improve roll and pitch.

Only the Volkswagen Golf comes close to the Corolla XRS's quality of materials and superb fit and finish, which should win over import enthusiasts. (Photo: Toyota)

The new model sports a stiffer steering column, reportedly reducing vibration and benefiting response to input, plus a specially tuned power steering rack for improved feedback. Finishing off the handling package are slightly larger diameter alloy rims, from 15-inches to 16, wrapped in lower profile Michelin performance performance rubber.

Inside, the XRS features two-tone well-bolstered sport seats, silver-finish dash and console accents, white-face instruments featuring a modified tachometer boasting a 6,500 rpm redline, a leatherette shift boot below a leather and chrome covered shift knob, as well as XRS badging. Only the Volkswagen Golf comes close to the Corolla's quality of materials and superb fit and finish, which should win over import enthusiasts who normally take notice of such details.