The 1.8-liter four-cylinder engine that comes standard on the Corolla generates 132 horsepower and 128 pound-feet of torque. It's EPA-rated at 26/35 mpg City/Highway with the manual transmission and 26/34 mpg with the automatic. The 1.8-liter engine uses dohc and Dual Variable Valve Timing with Intelligence (VVT-i) to optimize valve timing for the best blend of power, economy and emissions. It uses a timing chain rather than a belt, which usually saves on service costs.

The 2.4-liter engine that comes on the XRS makes 158 horsepower and 162 pound-feet of torque. It has EPA-rated fuel economy figures of 22/30 mpg City/Highway with either transmission. It also benefits from dual VVT-i technology. 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 its redline as it won't go any faster and never gets a whole lot of sparkle to it; it just goes. All models run fine on regular unleaded gasoline.

Contributing to the acceleration performance of the XRS is shorter gearing in both transmissions. 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 Honda Fit Sport.

The standard Corolla rides more smoothly than the Corolla XRS does. As wheel diameter increases and tire aspect ratio decreases (causing the tire sidewalls to become shorter) so does handling crispness improve and the potential for ride comfort degrade. The Corolla has a taut ride while maintaining decent 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 from the standard drum brakes 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.

The Corolla has electric power steering, which matches effort to speed but does not telegraph information from tire to steering wheel as well as some drivers might prefer. 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 exhibits no squeaks or complaints, even after being aired out over a particularly nasty railroad crossing. Much of this can be attributed to its stiff body shell, which also offers good crash resistance.