With some Celica GT-S genes residing under the hood, the 2005 Toyota Corolla XRS required beefier suspension to flesh out its new image. Front and rear stabilizer bars are standard on all Corollas, but the XRS employs sport-tuned suspension and a slightly lower ride height to minimize body roll. The 16-inch Michelin Pilot Primacy tires do a good job of holding the road, but they're designed for performance, not traction in all weather conditions. In areas frequented by poor weather, all-season tires are a much better choice. Toyota has outfitted the Corolla XRS with a unique steering rack and upgraded steering column to improve response, but the result is steering that feels unsettled in the corners. On the highway, the ride is firm but not jarring and road irregularities are handled well. The Corolla XRS is tall, and is prone to being buffeted by strong wind gusts.

Unlike some of its competitors, the Corolla XRS opts for rear drum brakes rather than better-performing discs. Pedal response is well modulated, and we encountered no noticeable fade during our testing, thanks in part to rear drums that are 69-mm larger on the Corolla XRS. Up front, Toyota has opted to equip the more-capable Corolla XRS with solid front disc brakes rather than the ventilated discs found on other Corollas, models with less horsepower and a less sophisticated suspension. Typically, ventilated discs are used to dissipate heat on vehicles capable of higher speeds and superior handling, so the appearance of solid discs on the peformance-oriented Corolla is baffling. While braking performance drew no complaints, mirroring the competition by placing discs on all four corners would provide improved braking performance and better reflect the sporty nature of the Corolla XRS.