I personally don't like the new Corolla or Matrix.Having put approximately 20k on a '04 Mazda3s, I find the new Corolla / Matrix to be underpowered according to the specs and looking at the pics, they have none of the sexy lines or "neat factor" that the Mazda3s has. The car also seems lacking compared to the Civic.
Is the new Corolla / Matrix an improvement over the current models? Most certainly. Is it a class leader in my eyes? Most definitely not, it is more like middle of the pack, not tops in performance, fuel economy, looks or feature content.
One car can't do it all. The thing that tipped the scales for us on the Corolla was the overall price, and the EPA ratings. We also needed something that would just work, cause our last car failed pretty bad at that.
I do think Toyota is going to shoot themselves in the foot if they can't lower the cost of the Corolla. The whole reason we got a Corolla over a Civic was because of the cost.
A 05 Corolla LE 5sp final sticker price (with all fees) was $15,800 Today, the same car is $16,500. I don't know if we walked in the dealer on a good day or what, but with a $500 rebate, we were able to get our car for 14K even out the door. With todays popularity of the car and gas prices, I think it would be a neat trick to get a 08 CE out the door for 14K even.
We had a few friends and family members who were interested in a Corolla after seeing our car. We told them how much we spent, and told them that they probably couldn't get it for that, but to not get racked over the coals. They told us that they looked at barely used ones and the sales guy laughed at them when they made offers on them. They couldn't even get a used one for as little as we got a new one.
So, if Toyota is going to price the Corolla on par with more fun cars, then ya, I don't see why anyone would buy one. I know if we were in the market for a car today, I don't see any reason why a Corolla would win against other cars on the market. In 05, it did. Prices were much lower then a Civic, they had a sumer rebate going on, and we some how got a really good deal. I don't think those events could ever be repeated again.