The 2008 Highlander adds significant standard features (all new V6 engine, new five-speed automatic sequential shift transmission, electronic power steering, three-row curtain side airbags, driver's knee airbag, new larger alloy wheels, etc.) with only a modest MSRP increase.

The 2008 Highlander Base grade will carry a Manufacturer's Suggested Retail Price of $27,300 for the 4x2 model, an increase of $510, or 1.9 percent over the previous generation Highlander. The Base grade 4x4 will carry a base MSRP of $28,750, an increase of $560 or 2.0 percent.

The base MSRP for the Sport grade will carry a base of $29,950 for the 4x2, an increase of $985, or 3.4 percent. The Sport grade 4x4 will carry a base MSRP of $31,400, an increase of $965, or 3.2 percent.

The MSRP for the top-of-the-line Highlander Limited will be $32,700 for the 4x2, an increase of $1,890 or 6.1 percent. The Limited 4x4 will carry a base MSRP of $34,150, an increase of $1,940 or 6.0 percent. Highlander gas models will go on sale in July with hybrid models reaching Toyota dealers in late September.

All three grades will be powered by a new 3.5-liter V6 with dual independent variable valve timing with intelligence (VVT-i) that delivers an impressive 270 horsepower -- a 55 horsepower gain over the previous generation's 3.3-liter engine.

Highlander has an impressive list of standard safety features. It will provide a segment-leading total of seven airbags, including a driver's knee airbag and roll-sensing side curtain airbags for all three rows in addition to active headrests for the driver and front passenger.