The new Highlander will be launched as a 2014 model year vehicle.

Toyota said an all-new exterior design conveys both refinement and strength, complementing a new interior that will raise the bar in the mid-size SUV segment.  With three-row seating for up to eight, an array of standard features, a host of available in-cabin technologies, and increased cargo capacity, the new Highlander will offer a nuanced  balance of style, comfort and utility.

The new Highlander will come with three powertrain choices: a 2.7 liters four-cylinder engine, the well-known 3.5 liters V6 which will be combined to a new six-speed transmission, and a V6-powered Hybrid Synergy Drive.

The Highlander’s body structure will include high-strength steel in the front pillars for increased rigidity.  Visibility has been improved through precise repositioning of the front A-pillars, while the size of the rear quarter glass has been increased to provide a wider view for driver and occupants.

The 2.7-liter four-cylinder engine is equipped with a variable intake manifold and dual Variable-Valve Timing with intelligence (VVT-i), which controls phasing on both the intake and exhaust camshafts to optimize torque and fuel efficiency.

The 2.7-liter engine is linked to a six-speed electronically controlled automatic transmission.

Toyota’s well known 3.5-liter V6 is also equipped with dual VVT-i and a variable intake manifold. Acceleration and fuel efficiency are improved through the use of a new six-speed, electronically controlled automatic transmission (ECT) that offers selectable manual sequential shifting.

The Highlander Hybrid model’s Hybrid Synergy Drive system returns, pairing the 3.5-liter V6 gasoline engine with a high-torque electric drive motor-generator for additional power and fuel efficiency.

Toyota said in its press release following the NY launch that the new Highlander will provide a more dynamic driving experience, with new technologies that include Dynamic Torque Control All-Wheel Drive (AWD), enhancements in suspension performance, and optimized electric power steering.  The spring rates and the shock absorbers have been optimally tuned to help enhance the vehicles handling characteristics.

The Highlander’s Dynamic Torque Control AWD system automatically shifts from front-wheel drive (FWD) to AWD when accelerating or when sensors detect wheel slippage.  The driver is able to view the torque-distribution settings on the meter display.

The Dynamic Torque Control AWD system continuously monitors and controls the torque transfer between the front and rear wheels via an electromagnetically controlled coupling positioned in the rear differential.

Front to rear torque distribution can vary from 100:0 to 50:50, with front-wheel drive (100:0) automatically engaged under normal driving conditions to help improve fuel consumption.

The Dynamic Torque Control AWD system uses information sent from various sensors (speed, steering angle and speed, throttle angle and yaw rate) to automatically govern the transmission of torque to the rear wheels, as required.

An interactive management system coordinates control of the Dynamic Torque Control AWD, Vehicle Stability Control (VSC) and Electric Power Steering (EPS) systems to enhance Highlander’s performance, handling and safety.

All new Highlanders will come equipped with Toyota’s Entune multimedia system.  The Display Audio system with a 6.1-inch touchscreen with Bluetooth and voice recognition is standard, while an eight-inch touchscreen system and Toyota’s Entune app suite with12 JBL speakers is also available.

The new Highlander will also offer an available Rear Seat Entertainment system with an RCA coaxial input terminal at the rear of the center console to allow external devices, such as gaming systems, to be connected.

According to Toyota, all 2014 Highlander’s will have eight standard airbags.  Like every Toyota, Highlander will feature the standard Star Safety System, which includes Enhanced Vehicle Stability Control, Traction Control, Electronic Brake-force Distribution, Brake Assist, an Anti-lock Braking System, and Smart Stop Technology.  All Highlander’s will also come equipped with a standard backup camera and Hill-start Assist Control.  All AWD models will have an AWD LOCK switch.

New available safety and convenience features include rear parking sonar, Blind Spot Monitor, Lane Departure Alert, Rear Cross Traffic Alert, and a Pre-collision System.

All Highlanders are assembled at Toyota Motor Manufacturing, Indiana (TMMI) in Princeton, Ind. The all-new Highlander will reach dealer showrooms in early 2014.

Prices and fuel consumption ratings will be announced closer to sale date. This new Highlander will be found in dealerships early in 2014.

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The Toyota Prius and Highlander Hybrid have garnered category honors as part of U.S. News and World Report’s Best Cars for Families awards.

The 2013 Toyota Prius took top honors in the Best Hatchback for Families category, while the 2013 Highlander Hybrid won the Best Hybrid SUV for Families award for the third year in a row.

Meanwhile, the Ford Fusion Hybrid won the Best Hybrid Car for Families category.

The Best Cars for Families awards said it combine quality, size and family-friendly features into a composite score. Quality is measured using a weighted average of scores from the U.S. News rankings at the time the awards are published.

The rankings compare cars on the basis of safety, reliability and a consensus of automotive critics’ opinions. Size is based on a vehicle’s seating capacity and interior space.

For family-friendly features, the U.S. News editors factor in the availability of features deemed to be helpful to families.

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As part of its corporate plan to move more vehicle production overseas, Toyota has announced it will be shifting assembly of its Highlander Hybrid to Princeton, Indiana by mid 2013.

The move comes as Japan’s largest automaker attempts to minimize the impact of currency fluctuations, which are not only eating into profits at home but making it increasingly difficult to export vehicles while maintaining competitive prices.

Toyota’s North American president and chief operating officer, Yoshi Inaba, who made the announcement at the 2012 Chicago Auto Show, said that by moving Highlander production to Indiana, the company will create an additional 400 jobs at the Princeton plant, with possibly 1,000 to 1,500 positions added via outside suppliers and contractors.

Not surprisingly, is represents welcome news for the U.S., which is still struggling with a sputtering economy and relatively high rates of unemployment.

In addition, Toyota says it plans to boost export orders from its North American plants, including Highlander Hybrids (currently the company is exporting Camry sedans and Sienna minivans to South Korea).

Inaba’s remarks have led some to speculate whether Prius production might migrate stateside as well, as Toyota attempts to take advantage of the weak U.S. dollar.

Although a plan to start US Prius production several years ago at Toyota’s Tupelo, Mississippi plant fell through when fuel prices fell and the economy tanked, Inaba has said he isn’t ruling it out, stating the concept of an American made Prius “is always on our mind, when we consider when and where to localize it.”

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Model-year 2012 marks the seventh year that Toyota’s Highlander mid-size SUV has been available as a hybrid. In 2008, Toyota completely redesigned the Highlander Hybrid, giving it more refinement and a larger body while still maintaining the same gas mileage as its predecessor. In 2011, the Highlander Hybrid received what the auto industry calls a “mid-cycle refresh.” The update included new front-end styling, additional standard features and, surprisingly, a new powertrain that returns better fuel economy.

For 2012, the Highlander Hybrid has no significant changes. Still, with no competition in its class, the automaker is poised for continued dominance of the “large families who love hybrids” market.

Under The Hood

The gas-electric Highlander was outfitted last year with a 3.5-liter V6 engine, replacing the 3.3-liter six of its predecessors. The dual-overhead cam Atkinson-cycle engine (a more fuel-efficient version of the traditional four-stroke Otto-cycle engine) is rated at 231-horsepower. In addition, two electric motors join this powertrain, one in the front and one in the rear, boosting the overall horsepower to a very respectable 280. There is a third electric motor that operates solely as an engine starter. The whole system is connected to a continuously variable transmission, which is engineered to manage the various sources of power in a way that maximizes the Highlander Hybrid’s efficiency.

For even greater emphasis on efficiency, Toyota has outfitted the Highlander Hybrid with both “EV” and “Econ” driving modes. In EV, this hybrid functions solely on electric power, but only at low speeds and distances up to one mile. The more practical “Econ” mode works to limit throttle response in order to promote greater fuel economy. In other words, it restrains the engine’s ability to operate at its full potential. The ideal time to use this function is during stop-and-go traffic.

The result of this electronic wizardry when combined with the V-6 is an EPA fuel mileage rating of 28/28 city/highway and 28 combined. That’s the best fuel economy of any seven-passenger SUV available.

Though the Highlander Hybrid is a four-wheel-drive vehicle, it is not suited for off-road driving. The 4-WD system does not have a mechanical driveshaft from the front to the rear, and doesn’t require power-transfer gearing. Instead, it simply demands more torque from the rear electric motor as conditions demand.

Exterior

The hybrid model is differentiated from the gasoline model by its own unique grille and bumper design. It shares fenders and hood with the gas Highlander, but features color-keyed rocker panels with chrome accents, plus vertically stacked fog lamps. The projector beam headlights and redesigned taillights feature blue lens covers.

The hybrid version has about one inch less ground clearance than the standard all-wheel drive Highlander SUV, making entry and exit more like a minivan. Base models are equipped with 17-inch alloy wheels, while the Limited trim brings 19-inch alloy wheels and a power rear liftgate.

The Highlander won’t turn many heads, but then again, it’s not supposed to. But the looks boast a wide appeal that is popular with families, weekend roadtrippers, and diehard urbanites.

Interior

Interior style is well refined and smart, granting a comfortable cabin with many convenient features. Interior materials, as expected, are of high quality.

The big plus inside is standard third-row seating. The far-row seat is split 50/50, allowing four passengers in the vehicle when one half of the second and third seats are folded to accommodate long objects. Access to the third row is made easy with a walk-in lever placed at an easy to reach position at the bottom of the passenger-side second-row seat.

The Toyota Highlander Hybrid offers a wonderful 40/20/40-split second-row bench seat. It reclines, slides fore and aft and the center section can be removed and stowed away, leaving an open center aisle. This configuration results in a pair of second-row captain’s chairs with fold-down armrests, much like those found in many minivans.

In terms of cargo capacity, this SUV provides 10.3 cubic feet of space when the third row is in use, just over 42 cubic feet of space behind the second row when the third row is folded. With all rear seats stowed away, the Highlander Hybrid allows for a voluminous 94 cubic feet of storage area.

The Highlander Hybrid is available in both base and Limited trim levels. Base models come well equipped with seven-passenger seating, air-conditioning with rear climate control, a tilt/telescoping steering wheel and eight-way power driver’s seat. The standard CD audio system includes XM Radio, MP3/WMA capabilities along with Ipod connectivity and Bluetooth wireless technology. There’s also a center screen in the dash to display various bits of vehicle information as well as to provide the image captured by the car’s back-up camera. A navigation system is optional.

The Limited model adds leather interior with a 10-way power driver’s seat and four-way power front passenger seat that are both heated, power moonroof and three-zone climate control. DVD entertainment and navigation systems are options.

There is a gaggle of electronic active safety features: electronic stability control, traction control, and four-wheel anti-lock disk brakes with brake force distribution and brake assist. Occupant safety is delivered by seven airbags including dual-front, front side, side curtain, and one at the driver’s knee.

On The Road

Both the hybrid and standard Highlander are car-based — or crossover — midsize SUVs based on the Toyota Camry sedan. While not precisely duplicating the Camry, the Highlander Hybrid’s four-wheel independent suspension provides a ride that is noticeably superior to truck-based SUVs. Car and Driver had this to say: “Despite its electric bits, the hybrid drives almost exactly like a conventional Highlander. That means a high level of equipment, a cushy ride, great interior versatility, decent power, and spacious passenger accommodations.” The Orlando Sentinel’s reviewer was also impressed: “On the road, the ride is smooth and quiet. The electric power steering has above-average feel, and while the Highlander is no sports car, handling is better than you’d expect.”

As for the transition from electric drive to the gasoline engine, Car and Driver commented, “The switch between electric and internal-combustion power is nearly seamless, usually necessitating a glance at the dash-mounted power meter/trip computer to see what the V-6 is (or is not) doing.”
Economics

Regardless of all its other positives, its 28 miles per gallon city rating is, hands down, the vehicle’s crowning achievement.

The 2012 Toyota Highlander Hybrid has a base price that ranges from $38,140 for the entry model to $43,795 for the Limited. That’s approximately $3,000 to $7,700 more than the conventional gas-powered Highlander, depending on model comparison. But, for the premium in cost, the Highlander offers 10 more horsepower and 11 more miles to the gallon in the city and six more on the highway. Plus, tailpipe emissions are cleaner.

When comparing the Highlander to the popular, and soon to be discontinued Ford Escape Hybrid, there is a similar price difference. The Highlander is about $5,800 more expensive. The biggest difference falls in the way of sheer power and strength between the two vehicles. The Highlander Hybrid offers 280 horsepower and can tow up to 3,500 pounds, while the Ford Escape Hybrid rates at a much less useful 177 horsepower, with a towing capacity of only 1,000 pounds. The Escape hybrid does, however, edge the Highlander out in fuel efficiency, by about five to 10 percent, depending on model comparisons. You’ll need to decide if the extra mpg and the $5,800 premium trump the Toyota name as the leader in hybrid technology.

Compared to its corporate cousin, the Lexus RX 450h, the Highlander comes in at about $6,000 less. But that’s to be expected, regardless of the fact that the two vehicles feature the same hybrid system with virtually the same performance, same horsepower and nearly the same fuel economy. In the end, the Lexus is a true status symbol, and so it commands a significantly higher price tag. The Highlander’s greater affordability also comes from allowing shoppers to hedge on costs by opting down certain amenities, like upholstery, sound system, and other creature comforts that come standard on the Lexus. It should be noted that the most visible advantage Highlander has over the Rx450h is the availability of seven-passenger seating.

Consumers who don’t need to seat seven would probably be better served looking at the Ford Escape Hybrid, which offers the superior fuel economy of 34/31/32. But for eco-minded consumers looking for a practical people-mover, who can ask for anything more than the most fuel-efficient seven-passenger vehicle on the market?

Prices are Manufacturer Suggested Retail Price (MSRP) at time of writing and do not include destination charges, taxes or licensing.

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The voluntary recall was prompted by a National Highway and Traffic Safety Administration investigation launched in February, after 32 drivers complained about their vehicles stalling unexpectedly.

Toyota says that the problem can occur when the IPM overheats, causing various warning lights to go off and the vehicle to enter fail-safe driving mode—which allows it to continue traveling at lowered speeds for a limited distance.

In the worst case scenario, the power supply circuit fuse could blow due to a damaged transistor, causing the vehicle to lose power and roll to a stop. Toyota says it is unaware of any accidents that may have been caused by the malfunction.

In July, Toyota will notify its relevant North American customers through the mail. The carmaker says it is currently working to round up the parts necessary to complete the recall, which will cover more than 110,000 vehicles worldwide. Transistors are one of the key auto components affected by the Japanese earthquake in March, though it’s unknown how that might factor into the recall.

Last year, Toyota faced fallout from a deadly flaw that caused acceleration pedals on many of its models to become wedged in the driver’s floor mat. Since 2009, the carmaker as recalled more than 14 million vehicles worldwide, mostly due to the floor mat issue.

Toyota’s reputation for safety has taken a major hit, but after a lengthy investigation in the United States, a separate but heavily-covered “unintended acceleration” phenomenon that some drivers reported in the Prius—falsely attributed to the car’s sophisticated electronic control system—was concluded to not exist.

The potential danger from this latest recall seems to be limited, and shouldn’t be seen as any more hazardous than dozens of others announced by major automakers each year. Nevertheless 2006-2007 Highlander Hybrid and RX 400h should watch their mailboxes in the coming weeks for further details and instructions on how to arrange for a repair.

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Next year’s Highlander hybrid will be outfitted with a brand new 3.5-liter V6 engine, replacing the the 3.3-liter, 270-horsepower engine of its predecessors. The increase in power boosts this year’s model to 280 horsepower—ten more than what’s available in the the conventional V6 model. But where in the past Toyota has opted to pair its hybrid system with a slightly less powerful engine for maximum efficiency, this year’s version of the SUV will provide improvements in both power and fuel economy.

The new Highlander hybrid is rated for an EPA-estimated 28 mpg in both city and highway driving conditions. That amounts to a 1-mpg uptick in city mileage and a 3-mpg improvement on the highway, compared to the 27/25 ratings for the 2010 model.

So why did Toyota sacrifice added efficiency for of a little extra horsepower? Reviews of the 2010 Highlander hybrid’s performance were generally very positive, and as the only mid-size hybrid SUV on the market, the only competitors for the vehicle were the sister offerings from Ford and Mercury—which didn’t offer seating for seven, but were cheaper and provided nearly 20 percent more MPGs than the Highlander.

Though we can only speculate as to the reasoning behind the new 3.5-liter engine, one would think that the increased efficiency provided by this year’s hybrid powertrain could have been configured to match the 270 horsepower of its conventional counterpart and provide even more MPGs—had again been attached to a 3.3-liter engine.

Toyota’s decision may have been in response to recently slowing hybrid sales, with the carmaker opting to put its gas-electric SUV up against its conventional peers instead of just trying to win the hybrid SUV market. This year’s Highlander will give customers power that’s on par with most other V6-powered SUVs but fuel economy that’s in a league of its own for its mid-size class. Whether or not this strategy turns around sales numbers for the vehicle—which have fallen 46 percent over last year—remains to be seen.

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