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Toyota GT86 CS-R3 rally car presages for-sale customer racecar

Rallying may enjoy a very strong association with all-wheel drive, but it wasn't so long ago that the World Rally Championship was populated by cars that slipped and slid across gravel and tarmac using rear-wheel drive. One of those was the Toyota Celica. While the little Celica eventually joined the gravel-spewing masses with an all-wheel-drive rally car, Toyota is returning to its rear-drive rally roots with a modified version of the critically acclaimed GT86.
Called the CS-R3, the new model boasts all the necessary changes to turn the diminutive twin of the Scion FR-S and Subaru BRZ into a car capable of tackling the tough, twisting paths that are so routinely conquered by the world's rally cars. That means, of course, the CS-R3 has gotten a power bump.
Expected output sits between 240 and 250 horsepower, thanks to a new racing exhaust and manifold, as well as other changes. The ECU has been replaced with an item a bit more suited to racing, while the compression ratio has also been adjusted to boost the output.

Australia may offer money to keep Toyota making cars there

In the wake of last month's announcement that Ford will cease automotive and engine production in Australia after 2016, many are wondering what the country's other automakers will do. Holden has already confirmed it will stay the course despite Ford's exit.
Much of the GM subsidiary's reason for sticking around has to do with a deal made last year between Holden and the Australian government. In order to secure a GM investment of $1 billion and a commitment to keep manufacturing in Australia through 2022, the government threw in an extra $215 million. According to Australia's Minister for Innovation and Industry, Greg Combet, the government is now in talks with Toyota for a similar deal.
Toyota operates one plant in Australia, the Altona manufacturing and engine plant in Victoria. The facility produces the Camry, Camry Hybrid and Australasia-only Aurion for both the local market and export. The report from GoAuto indicates that negotiations with the Australian government would include adding production of a third, all-new model at Altona, possibly the new RAV4, because it shares many parts with the Camry.

Toyota Matrix not long for this world?

According to a report from AutoGuide, Toyota doesn't have plans to replace the aging Matrix hatchback in the United States after this year. If true, the timing coincides with the replacement for the Corolla, on which the Matrix is based, with that car slated to get its first complete redesign since 2006 (2008 in the US market).
We'd love to tell you how many Matrix models were sold by Toyota in the United States last year, but the automaker chooses to bundle Matrix sales with Corolla sales, so we have no idea. That said, we have to assume sales of the hatchback don't contribute much overall to the total number of Corolla-based machines.
We're also unsure if Toyota will choose to exit the youth-oriented compact hatchback market entirely, or if the automaker will rely instead on its hybrid Prius line and Scion models like the xB and xD.