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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.

Toyota announces two recalls affecting 1M Corolla, Matrix and Lexus IS models

The recall bug strikes Toyota again. The automaker has issued a voluntary recall of three models that, in total, represent more than one million units. Around 752,000 2003-2004 Toyota Corolla and Matrix models are being recalled for airbag concerns, while a windshield wiper issue is causing the recall for close to 270,000 Lexus IS sedans from the 2006-2012 model years.
Completely unrelated to the small airbag-related recall issued earlier in the week, the Corolla and Matrix recall is caused by a faulty airbag control module that could potentially short circuit, which could lead to the front airbags or seat belt pretensioners deploying. The Lexus recall is due to a wiper arm nut that wasn't tightened properly, which can cause the wipers to not work when trying to clear heavy buildup such as snow.
Scroll down for a press release that includes more information, as well as details about how owners can contact the manufacturer directly.

Tesla pulling plug on Toyota RAV4 EV battery deal

The future of the Toyota RAV4 EV appears to be in doubt. Tesla supplies the EVs battery packs, and it says that production ends later this year.
"Toyota is expected to end the current RAV4 EV model this year," Tesla said in its quarterly financial filing obtained by Bloomberg. "Our production activities under this program are expected to end in 2014," the company said.
This timeline fits closely with the original production plans for the RAV4 EV. When the $100-million project was first announced, Tesla said that it expected to supply battery packs for the vehicle from 2012 to 2014. Building components for the Japanese automaker continues to bring in money, though. In the company's Q1 2014 letter to shareholders, it said: "Automotive revenue included $15 million of Toyota powertrain sales." According to Bloomberg, Toyota has sold just 1,594 RAV4 EV models from 2012 through April 2014. Initially, the business had estimated that it would sell 2,600 units of the electrified crossover.