In today's jam-packed midsize SUV market, nowhere is it more crowded than in Toyota's own lineup. For 2008, the Japanese automaker redesigned its best-selling midsize SUV, Highlander--one of three it offers in the class. While it may seem like midsize SUV segment overkill, Toyota has distinct strategies and target audiences for each of its three similarly sized and priced mid-utes. For 2008, Toyota's "calm, confident one," as it calls Highlander, is narrowing its focus and putting the bull's eye on young, busy families.

2008 Toyota Highlander
Toyota's midsize Highlander is redesigned for 2008.

It's obvious that Toyota's quirky FJ Cruiser is its midsize SUV with youth appeal and the more rugged 4Runner sets its sights on the tougher 4WD crowd. Highlander, however, lacks a similar clear niche appeal and audience. With a slew of new comfort and convenience features and less-burly exterior styling, Toyota is hoping to win over not only the mainstream American family, but the green American family as well with its redesigned '08 Highlander and Highlander Hybrid.

Longer, Wider, More Powerful
"Customers who rejected Highlander told us they needed to be inspired by their SUV. They wanted a roomier and more comfortable interior with surprising innovations and versatility," said Bob Carter, Toyota Division Group Vice President and General Manager.

Toyota launched Highlander in model-year 2001. As vehicles in the midsize SUV segment grow bigger each new model-year, Toyota is following the trend with a longer, taller second-generation Highlander.

Riding on a new platform shared with Camry and Avalon, Highlander grows 3.8 inches longer to 188.4 inches. It also gets taller by one inch and grows 3.3 inches wider for 2008. The result is more head, leg, and cargo room and a weight gain of about 300 pounds.

Powering this bigger, heavier midsize SUV is an appropriately larger, more-powerful engine. All three trim levels, Base, Sport, and Limited, are powered by Toyota's new 3.5-liter V6 engine. First debuted in the redesigned-for-2007 Camry, this engine replaces the previous-generation's 3.3-liter V6. The new power plant puts out 270 horsepower, 55 more horsepower than the 3.3-liter.

Despite the extra pounds and added pony power, Toyota claims that new engine technology means Highlander's fuel economy numbers come in the same, if not higher, than the previous generation's. Toyota estimates the '08 Highlander will average 18/24 city/highway miles per gallon (based on EPA estimates using 2007 guidelines).

Dropped from Highlander's powertrain lineup is the 155-horsepower 4-cyl. According to Carter, the 4-cylinder version currently accounts for about 20 percent of Highlander sales. Toyota hopes RAV4, which grew longer and wider during its model-year 2007 redesign will be what the previous 4-cyl Highlander buyers turn to if the six isn't what they're looking for.

"We believe the 4-cylinder Highlander buyer will migrate to RAV4. If we see demand different than that, we're prepared to respond, but we feel RAV fills that gap nicely," Carter said.

Softer Styling Cues
"The midsize SUV segment has grown and evolved substantially since the turn of the century. The introduction and proliferation of the crossover concept has moved the focus of the midsize SUV image from rugged and off-road, to comfortable and refined," Carter said.

2008 Toyota Highlander
The redesigned Highlander features a slew of new family-friendly features and more
standard safety equipment than the previous generation Highlander.

Toyota is aiming for a less-rugged looking SUV with the redesign of Highlander. Designed at Toyota's Calty Design Center in California, Toyota hopes Highlander's new styling imparts a more refined, comfortable look. "On the outside, Highlander moves away from traditional SUV styling cues of tough and rugged, to a look and feel that is intelligent and advanced," Carter said.

Toyota refers to Highlander's new wider stance and contemporary, clean-looking lines as the look of "intelligence over toughness."

Family Friendly Features
Shooting to meet and exceed the safety, passenger-carrying capability, and stuff-hauling needs of the everyday family, Toyota introduced an array of new standard family-friendly features to Highlander, including increasing the SUV's cup holder count to 10.

"Passenger safety is consistently at the top of purchase considerations for Highlander buyers, so we made it a priority for 2008," said Chief Engineer Yukihiro Okane.

Seven airbags are now standard on the redesigned Highlander: dual front, dual front side, dual roll-sensing curtain side airbags that cover all three rows of seats, and a driver knee airbag. Adding to the list of standard safety features are ABS and traction control. Standard on all non-hybrid 4WD models is Downhill Assist Control and Hill-Start Assist Control. The downhill system gently applies the brakes to automatically regulate speed in downhill situations to alleviate wheel slippage in slick road conditions. Hill-Start Assist Control applies braking pressure to all four wheels on steep ascents to keep from rolling backward.

Inside, the third row seat returns. Highlander seats up to seven with a standard third-row bench, standard reclining second-row bench, and a transformable three-way second-row center console. While standard third rows are no big news in this segment, how you access Highlander's is.

2008 Toyota Highlander
Highlander's Center Stow feature allows the second row to morph from a second-row
storage console, to a center bench seat, to a third-row passageway in seconds.

The second row features Toyota's new Center Stow feature, a console area that flips from a storage bin with room for drinks and other small items, to a middle bench seat, to a clear passageway when it stows under the first row's center storage area. While few adults will fit comfortably in the space that once held the second-row bench's center seat, children will have no problem sliding through to the third row. Both the second- and third-row seats feature one-touch flip levers, easing the flip and fold maneuver that turns the passenger bay into a flat cargo space.

Other features include a new conversation mirror that flips down from the center of the roof so the driver can keep an eye on the backseat passengers, three-zone climate control, a separate-opening glass hatch, and a stand-alone backup camera not tied to the navigation system that is standard on all except the Base model.

Highlander Hybrid
Again for 2008, the Hybrid model comes in Base and Limited trim and gets its power from the previous hybrid/electric powertrain--a 3.3-liter V6 teamed with an electric motor for a combined 270 hp and a Continuously Variable Transmission. Toyota amps up the green factor with a few new features designed to help the driver maximize the Hybrid model's fuel economy.

Highlander Hybrid now features a new fuel economy indicator gauge behind the steering wheel that shows the driver when he or she is driving most efficiently. Another new system, the driver-selectable Econ mode, helps the driver regulate and smooth out throttle impulses from a stop to maximize fuel economy. Econ mode prevents excessive and aggressive acceleration, which wastes gas. Another new feature is Highlander Hybrid's EV mode. With the push of a button located in the front center console, the driver can choose to operate Highlander in full electric drive mode for a limited distance at low speeds. EV mode also works in low-speed stop-and-go traffic.

Toyota's total hybrid sales in 2006 equaled more than 170,000 units, equaling 67 percent of all hybrids sold in the U.S. Not only is Highlander part of Toyota's three-vehicle SUV plan, it is also part of a three-vehicle hybrid strategy alongside Camry Hybrid and Prius.

"This year, combined Toyota/Lexus hybrid sales will exceed a quarter-million units, strong evidence that mainstream new-car buyers are discovering hybrids," Carter said.

2008 Toyota Highlander
The new 2008 Toyota Highlander Hybrid goes on sale in October.

Highlander is Toyota's third most popular hybrid vehicle, and sales are slipping. While overall Highlander sales are up from 2006 to 2007, sales of the Hybrid model are down. Throughout the first 5 months of 2006, Toyota moved 15,404 Highlander Hybrids. During the same period this year, Toyota sold only 11,909. The manufacturer is banking on the new-for-2008 features to perk up wilting sales.

"With the exception of Camry, I think it's safe to say that no vehicle will be as important to our mainstream sales strategy as the all-new 2008 Toyota Highlander," Carter said.

Highlander goes on sale this July. Look for the Hybrid model in October.