If there's one thing you can say about the current Toyota RAV4, it's distinctive. With a clunky spare tire hanging off the side-opening rear gate in most versions, there is no mistaking the compact crossover for any of the other look-alikes currently in the market.
But the appearance is dated, so Toyota hopes to make a styling and a sales statement with the new version that it just demonstrated here in the desert.
With a new front end that has a "bolder, more aggressive look" and raft of improvements from stem to stern, the new 2013 RAV4 should be able to boost its sales next year past 200,000, says Bill Fay, general manager of the Toyota division. If the mark can be achieved, it would be a big 25% improvement from about 160,000, what it's on track to sell of the outgoing model this year.
Toyota needs the new RAV4, coming to dealers next month, to be a hit. Midsize cars, where Toyota continues to be strong with Camry, and compact crossovers, home to RAV4, continue to be the hottest segments in the auto industry. Many buyers who look at one segment often weigh buying in the other.
Toyota has a built-in advantage. Since the model's debut in 1995, Toyota has sold more than 1.5 million RAV4s. About 80% of them are still being driven, Toyota says. It is banking that many current owners will be willing to replace their old one with the new version.
But unlike the past when small crossovers were largely a three-vehicle sales race between RAV4, Ford Escape and Honda CR-V, every major automaker has stepped into the segment with increasingly strong models -- even German luxury performance brands. Toyota says both the number of models and overall sales have tripled in the segment since 2000.
Against stiffer competition, RAV4 has been outsold through the first 11 months of the year not only by CR-V and Escape, but by Chevrolet Equinox as well. Nissan's Rogue isn't far behind. The new RAV4 is a crossover on a mission.
"What this is going to do is going to do is help Toyota not lose customers to others," says Edmunds.com analyst Jessica Caldwell, who drove the new RAV4 here last week. "It's going to keep people in the Toyota family."
To do it, Toyota engineers went through the current RAV4 to find features to improve, starting with taking the spare tire off the tailgate and burying it spare tire out of sight under the rear cargo area. Now it has a modern liftgate.
In addition, the new one has:
--Better fuel economy. The 2013 RAV4 will be rated at 24 miles a gallon in city driving, 31 mpg on the highway and 26 overall. It's a 2 mpg improvement on the combined. The all-wheel-drive version is expected to come in at 22 mpg in the city, 29 on the highway and 25 mpg overall. Wind drag is cut by a new rear spoiler.
--Six-speed transmission. RAV4 keeps the same 176-horsepower 2.5-liter four-cylinder engine as the outgoing version, but adds an improved transmission. The powertrain is smooth,though not overly peppy. A "sport" mode button tightens the steering and holds the gears longer, but the notion of making a RAV4 seems to make as much sense as making a Ferrari practical. Toyota says the new RAV4 bolts from zero to 60 in 8.9 seconds, 1.3 seconds faster than the present version. The six-cylinder engine option has been banished. Still want it? Toyota says buy the larger Highlander SUV instead.
--Two more airbags. In an age when automakers always seem to find a way to pack another airbag in family vehicles, Toyota increases RAV4's from six to eight. The two new ones are a knee-level one for the driver and a seat-cushion bag for the front passengerCHK.
--New standard features. The rear-backup camera and a 6.1-inch display screen, previously options, are now standard. As for interesting options, there is now a rear cross-traffic alert system that beeps when it senses another vehicle while the RAV4 is backing in a parking lot.
--More space. The cargo area increases by about 2 cubic feet. The seats are thinner, which makes for more rear legroom, but the roofline tapers towards the rear, which could reduce rear-seat headroom. Overall, the vehicle is about an inch longer if the spare tire on the rear isn't taken into account.
--Quiet. Winding through the desert hills, the RAV4 remained quiet. Toyota says it gave it new aerodynamic outside mirrors to help reduce wind noise.
--Fancier interior. Some of the seat combinations are now two-toned and the interior is also gussied up, with a soft-touch panel with "French stitching" that runs across the dashboard. It's attractive, but it does make it hard to reach the sport and economy mode buttons underneath.
The new RAV4 will be priced at $23,300 for the base model, plus $845 in shipping charges. That's up from $22,650 for the cheapest RAV4 now.
Toyota thinks the more popular version will be the XLE, which has more standard equipment including a sunroof, at $24,290. The fanciest version is the Limited at $27,010, which has larger 18-inch wheels, push button start and Toyota's fancy infotainment system, Entune. Add $1,400 more for all-wheel drive.
Still, RAV4 isn't a luxury barge. The upscale version doesn't come with leather seats. Instead, it has an upscale plastic.
The model will be aimed at young couples with kids, active single people and empty-nest boomers. With a target market that large, Fay indicates it's likely that RAV4's sale campaign will kick off with a Super Bowl ad.
Will it win back the compact crossover segement for Toyota?
It's got a shot, says analyst Caldwell. "It's a compelling package at the price point."
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