Toyota is known for quality and reliability, but there is a feeling among some that those areas have slipped of late. Toyota officials acknowledged that they have fallen short of some internal standards, and they've responded with a new manufacturing program called Customer First. The Highlander was the first vehicle to benefit from the program, which includes additional prototypes, additional quality control personal, and a renewed focus on product quality.

Climb in the driver's seat of the 2008 Highlander and you'll see the fruits of Customer First. The look is more upscale than the last model. Fit and finish are excellent and the design is attractive. Budget realities mean there are more hard plastic finishes than in a typical Lexus, but those plastics are nicely grained and assembled with care. Only the headliner, which looks like a cardboard egg carton, disappoints.

The various controls are easy to spot, and they move with precision. All but the base model have a 3.5-inch screen that displays trip computer and climate control information, as well as the image from the rear backup camera. The picture is awfully small, but it could help the driver avoid making the tragic mistake of backing over a child. It also speeds parallel parking or backing up to a wall.

Opt for the navigation system, and the camera is projected onto the larger navigation screen, making the image easier to see. The display also absorbs some of the audio controls, adding an extra step or two when changing stations.

Cup holders abound (with 10 plus a bottle holder in each door) and there is plenty of storage for small items.

Hybrid models have some exclusive interior touches. The gauges are trimmed in blue instead of red, and a power meter replaces the tachometer. Displayed either on the multifunction screen or the navigation screen are Consumption and Energy Monitor information. The Consumption screen displays fuel economy in real time and five-minute increments, and the Energy Monitor screen employs a schematic to show when the gas engine and electric motors are in use. It may be fun to watch these screens, but be careful because they can distract attention from the road.

Many buyers like SUVs because the high seating position lets them see over traffic. The Highlander's elevated ride height and upright seating position give it that desirable SUV trait but with easier step-in. Head and leg room are generous in the first and second rows. Up front, the leather seats are comfortable. My back felt a little sore after a few hours in the cloth seats, however. Visibility is good to all corners.

The second-row captain's chairs are comfortable, and the Highlander has a handy removable center seat that can be replaced by a center console. The area between the second-row seats can also be left open to provide a walkthrough to the standard third row. Either the center console or the center seat can be stowed beneath the front seat center console.

The third-row seat in the last-generation Highlander was nothing but an afterthought, fit only for packages or toddlers. Room is much better in this generation, aided by second-row seats that can slide forward. Adults can now fit, but the seat cushion is set low, so it's still not ideal for long trips. Access to the third row is easy from the passenger side, as the second row captain's chair flips and slides forward in one motion. The driver's side chair folds flat, but doesn't slide forward far enough to allow passengers to walk through.

For cargo space, the second- and third-row seats fold flat to open up a very useful 95.4 cubic feet. Tethers and levers are provided in the cargo area to make folding and unfolding the seats a breeze. The available separate opening rear glass is a nice convenience, and the load height is low for an SUV, making it easier to load groceries, duffle bags, and other cargo.