For the 2011 model year, the Highlander Hybrid has been overhauled—outside, inside and under the hood—and with no competition in its class, the automaker is poised for continued dominance of the “large families who love hybrids” market.

The new gas-electric Highlander is outfitted with a brand-new 3.5-liter V6 engine, replacing the 3.3-liter six of its predecessors. The dual-overhead cam Atkinson-cycle engine (a more fuel-efficient version of the traditional four-stroke Otto-cycle engine) is rated at 231-horsepower, an increase of 22-hp over the 2010 edition. In addition, two electric motors join this powertrain, one in the front and one in the rear, boosting the overall horsepower to a very respectable 280. There is a third electric motor that operates solely as an engine starter. The whole system is connected to a continuously variable transmission, which is engineered to manage the various sources of power in a way that maximizes the Highlander Hybrid’s efficiency.

For even greater emphasis on efficiency, Toyota has outfitted the Highlander Hybrid with both "EV" and "Econ" driving modes. In EV, this hybrid functions solely on electric power, but only at low speeds and distances up to one mile. The more practical “Econ” mode works to limit throttle response in order to promote greater fuel economy. In other words, it restrains the engine’s ability to operate at its full potential. The ideal time to use this function is during stop-and-go traffic.

The result of this electronic wizardry when combined with the new V6 is an EPA fuel mileage rating of 28 miles per gallon city and 28 mpg highway. That’s up from last year’s numbers of 27 mpg and 25 mpg respectively. Makes you want to ask how they did that and add 10 more horsepower.

In terms of design and style, the 2011 Highlander’s updates include an all-new hood, fenders and front fascia. The hybrid model is differentiated from the gasoline model by its own unique grille and bumper design. It shares the new fenders and hood with the gas Highlander but features color-keyed rocker panels with chrome accents, plus vertically stacked fog lamps. The projector beam headlights and redesigned taillights feature blue lens covers.

The hybrid model has about one inch less ground clearance than the standard all-wheel drive Highlander SUV, making entry and exit more like a minivan. Base models are equipped with 17-inch alloy wheels, while the Limited trim brings 19-inch alloy wheels and a power rear liftgate.

Interior style is well refined and smart, granting a comfortable cabin with many convenient features. Interior materials, as before, remain high quality.

The big news inside is third row seating is now standard and, thankfully, the previous seat has been discarded. Instead of a one-piece design, the new third row seat is split 50/50, allowing four passengers in the vehicle when one half of the second and third seats are folded to accommodate long objects. Access to the third-row is made easy with the walk-in lever placed at an easy to reach position at the bottom of the passenger-side second-row seat.

What’s the driving experience in this new hybrid? In one of the first reviews of the vehicle, Edmunds.com says, “With the same tires and suspension underneath, the 2011 Highlander Hybrid drives about the same as before. We observed the same impeccably smooth and quiet ride, reasonable coordination and modest limits as before.”

With fuel economy of 28 city/28 highway, the Highlander Hybrid is the most efficient seven-seater vehicle on the road. Regardless of all its other positives, its 28 miles per gallon city rating is, hands down, the vehicle’s crowning achievement.

The Highlander Hybrid has a base MSRP that ranges from $37,290 to $42,945 plus $810 destination charges. That’s approximately $3,000 to $7,700 more than the conventional gas-powered Highlander, depending on model comparison. But, for the premium in cost, the Highlander offers 10 more horsepower and 11 more miles to the gallon in the city and eight more on the highway. Plus, tailpipe emissions are cleaner.

2011 Highlander Hybrid