By Tim Plouff

The business model for hybrid-powered cars and trucks is changing.

The initial hybrid vehicles — small gasoline-fueled internal combustion engines mated to battery-powered electric motors — were neat scientific experiments that highlighted enhanced fuel economy plus a sense of being “green” by virtue of much lower tailpipe emissions than conventional small cars.

Honda’s tiny Insight was the first hybrid, but Honda, ever the resourceful and innovative engine builder, has taken a more reserved approach to hybrid power and has instead focused more on fuel cells and hydrogen power while still building hybrid versions of the Civic and Accord.

Honda believes, as does Toyota, that each technology will use some hybrid-style thinking.

Toyota tapped into the increasing popularity of the hybrid phenomenon early with the four-passenger Prius.

Toyota recognized that there was a market, an angle, however small, for this product. The company applied its resources (almost $1 billion) to the development of ever more sophisticated batteries, control systems, wiring harnesses, cooling systems, electric motors and regenerative brakes. It earned 650 patents for its Hybrid Synergy Drive system.

Toyota now is recognized as the hybrid technology leader, with licensed sales to both Ford and Nissan.

Toyota is so committed to hybrid powertrains that it plans to produce a hybrid-powered version of virtually every Toyota- and Lexus-badged product by 2010.

But in the five years since the Prius hit these shores, now selling at a yearly pace of roughly 100,000 units, the latest hybrid powertrains have been more about power, lots of power.

Still achieving higher fuel economy and lower emissions than conventional small cars (and compact SUVs), the new hybrids are weathering the universal criticism that their EPA mileage numbers are essentially inflated and unobtainable in real-world driving.

The newest hybrid marketing has capitalized on their “green-halo” effect and boasted about their appeal as performance hybrids.

Cake, frosting, ice cream — the works — are possible with today’s new hybrids, if you can afford the entry price.

This is apparent with this week’s Highlander SUV Hybrid.

Using a de-tuned version of the regular Highlander’s 3.3-liter V-6, plus the added torque and power of not one but two electric motors, (three in AWD models) the Hybrid Highlander has more power, better acceleration, cleaner emissions, and better fuel economy than any other Highlander available.

It also is the most expensive Highlander that you can buy.

Developed alongside the Lexus RX400-hybrid (both are based on the front drive Camry platform) the Highlander shares almost all of its hybrid system with the more expensive Lexus.

The Lexus is marketed as the first premium, high-performance hybrid vehicle, while the Highlander will be the mainstream family SUV/crossover wagon.

Still, the Highlander Hybrid costs $5,500 more than a comparably equipped V-6-powered model—making it only $2,500 less expensive than the base model Lexus RX330.

This highlights one of the rubs against owning a hybrid: Despite gasoline prices hovering around $3 a gallon, $5,500 will buy a heck of a lot of gasoline.

And this is why the added power of the new hybrids such as the Lexus, the Highlander, and the Honda Accord V-6 has such kick-in-the-butt appeal.

Everything we buy today is bigger, faster, and better in some way than the item it replaces. From enhanced cell phones, smart TIVO recorders, and handheld Blackberrys to faster computers, better freezers and larger washing machines, we want more, quicker, cheaper.

The Highlander Hybrid acts on this premise.

Prod the throttle from rest and the gas engine ignites with little fanfare and instant power. The CVT—continuously variable automatic transmission (no gears) — keeps the gas engine spinning in its peak powerband while pulling torque from the batteries and the electric motors.

The Highlander Hybrid has a surprisingly strong mid-range punch, pulling so hard that some torque steer is evident on crowned roads. The stability and traction system cannot be turned off — good thing, too, as you could easily spin the front tires.

Two-lane passing, freeway merging, and elevated highway cruising speeds are no problem for the electrified Highlander. The electric motors provide peak torque all the time they are working, giving the Highlander Hybrid better torque output ratings than any plain gas Highlander.

Toyota boasts that the Highlander has the power of a V-8 with the fuel economy of a four-cylinder.

Actually, it is better on both counts. The Highlander Hybrid is as quick as a 4Runner V-8 but still produces better fuel economy than the four-cylinder Highlander.

My fuel mileage never matched the EPA estimates, but the real-world numbers are a lot better than any other mid-size SUV, ranging from a low of 24.2 mpg to a best of 27.3 mpg. 

I never drove the Highlander thinking about maximizing my mileage. I just drove it, hard.

At low speeds in the city, the hybrid’s electric motors can power the Highlander away from a stop. Hence the higher city EPA ratings.

But just a tiny squeeze of the throttle starts the resting gas engine for additional speed and power.

Absent from the Highlander Hybrid is the entertaining bar graph and assorted lighted displays found in the Prius, gauges that coach you into more moderate gas pedal usage.

The Highlander also is missing a comprehensive trip computer to help measure your economy.

Not much else is lacking in the Toyota however. The Highlander Hybrid is a complete and competent family wagon.

More of an upright Camry wagon than a rough and tumble SUV, the Highlander possesses excellent ingress and egress plus appropriate ergonomics for all users.

The floor space for second row passengers is completely flat so all riders have room for oversized feet. The small, folding third-row seats (best suited for junior-sized riders only) form a flat load floor.

The middle row seats split to fold, recline for comfort and slide fore and aft for cargo or people room. They are nicely sculptured for real adult-sized resting, a trait that is all too lacking in much of the competition.

The middle-row seatbacks do not fold to a flat load floor because the battery packs rest underneath this space. Yet maximum cargo capacity is a respectable 80 cubic feet with all rear seats folded.

The driver’s cockpit is a user-friendly presentation of smooth-acting controls smartly detailed and richly finished.

Panels slope to your attention and grip, in a flowing design that surrounds you yet doesn’t crowd you. Buttons and switches fall readily to hand and work with the usual Toyota precision.

The center console offers several covered bins on top plus an open storage space below that is large enough for a purse or small bags. Door pockets and overhead bins hold additional articles.

The remote stereo controls appropriately reside on the left side of the steering wheel and the cabin is generally hushed.

Nothing inside suggests that you might have a unique and innovative powertrain resting under the hood and only a single tiny badge on the liftgate mentions the hybrid system.

The ride is more plush than sporty. Some body lean is evident in sharp turns but a plethora of safety systems keeps the Highlander safely planted on the tarmac.

A “soft-roader” not an off-roader, the Highlander is a crossover wagon for how people use SUV’s—as the family wagon.

Towing capacity is 3,500 pounds.

I always thought of the Highlander as a nice but unexciting, vanilla-flavored SUV. Adding the hybrid powertrain turns this Toyota into a more fuel-efficient, more powerful family vehicle that is even more environmentally friendly — all without any sacrifices.

More, better, faster. Just the way we want it — if you can afford it.