Changes for 2001 include a realigned product mix. The base Corolla is now the CE, followed by a new S version and topping out with the LE model. The S version comes with standard fog lamps, color-keyed body side moldings, door handles, and front grill, a leather-like wrap for the steering wheel, and a few other touches that imply sportiness. It receives no mechanical or performance-minded upgrades.

A few new exterior details show up on the 2001 models. There's a new front fascia with four-beam halogen headlamps, some chrome-plated trim, and restyled rear lamps. Still, even with these enhancements, the Corolla isn't easily classified as a stunner.

Standard safety features include dual airbags, side-impact door beams, front seatbelt pretensioners and force limiters and adjustable shoulder belt anchors, child protector rear door locks. Side-impact airbags ($250) and ABS ($550) are optional.

The interior design matches the exterior insofar as it's attractive and well finished (plus, there are new interior fabrics for 2001), but it is otherwise similar to most cars in the class. Instruments are housed in a curved dashboard; a tachometer with an outside temperature gauge is standard. Controls are laid out for easy use. Cupholders, storage boxes and a center-console with a lidded bin are provided for convenience.

Materials and workmanship are above average. Some find the cloth seat material scratchy, but it looks attractive and durable. Neat-looking red illuminated instrument faces come with the S model.

Luggage can be stowed in a roomy trunk with a large lid that opens right down to bumper level for easy loading. Corolla S and LE trim levels feature a convenient release in the trunk to fold down the rear seats.

Its all-aluminum 16-valve 1.8-liter four-cylinder engine is powerful, lightweight and economical. Toyota has outfitted this double overhead-cam engine with its VVT-i variable-valve timing technology. Rated at 125 horsepower, this engine gives the Corolla sprightly performance. With the variable-valve technology, it offers strong low-rpm torque, that force that propels you away from traffic signals. Low-rpm torque is especially important when teamed with an automatic transmission and the Corolla works well with the four-speed automatic. At the same time, it gets an EPA-rated 39 mpg on the highway with the automatic. The engine is noisy under hard acceleration. It's much quieter at cruising speeds, though there's an intrusive resonance at 3000 rpm. The transmission, on the other hand, shifts smoothly and responds quickly when called upon to downshift for hill climbing or passing maneuvers.

Judged by class standards, the Corolla handles well. Power-assisted steering is light but precise. Ride quality is very good, thanks to a relatively long wheelbase, fully independent MacPherson struts on all four wheels and front and rear stabilizer bars on all three trim levels. Nothing short of potholes will disturb the Corolla's occupants. Freeway expansion strips, which create uncomfortable rocking-horse motions on some cars, go unnoticed in the Corolla.

The economy-grade tires are less than ideal, however. They make a noisy nuisance of themselves when asked to carry the car around corners at anything beyond a casual pace, they transmit tread noise into the cabin on the highway, and they lack grip under hard braking. Otherwise, the brakes work well, even after repeated hard use. We recommend ordering the optional anti-lock braking system.

Driving a Corolla equipped with the automatic transmission, I found the brake pedal and throttle a bit close together for my big feet. The pedal arrangement is much better on models equipped with the five-speed gearbox.

Corolla holds its ground well against strong competition. Budget-minded buyers who want a solid car need look no farther. Those seeking a sportier package may want to check with their Volkswagen or Honda dealers.

By shopping carefully, a customer can drive away in a nicely appointed Corolla without spending much more than $15,000. The CE model, for example, when equipped with optional side air bags and ABS, is a good buy. As such, it represents good value. Be warned, however, that a loaded Corolla intrudes into Camry territory, so a decision has to be made: Do you want a larger car with minimal extras or a smaller car loaded with everything?