2008 Toyota Corolla/Matrix

Does anyone know why Toyota has reduced the MPG estimates for the 2008 Corolla and Matrix models from 2007?

Its not just Toyota its every single auto sold in the US pretty much. The epa revised the way they test MPG to reflect reality. If you go to fueleconomy.gov it will even show the revision #'s pre 2008.

Thank you for your feedback, I haven’t seen the other 2008 MPG ratings yet, but your feedback makes sense.

Largely because of the unrealistically high hybrid EPA estimates, the EPA changed their testing procedures to better reflect real world driving habits. As a result, the mileage estimates are lower, but are closer to what one would actually see in the real world. Every car (or very nearly so) gets a reduced EPA estimate now due to the improved procedures - some hybrids estimates are up to 25% lower than when using the previous testing procedures!

The MPG figures are what is required by the EPA based on their test cycles and formulas, and not just whatever Toyota (or any other manufacturer) has decided on using.

Beginning with the 2008 model year, the EPA has added some additional tests to more accurately reflect American’s driving (such as with AC use, colder temperatures, and some faster speeds and acceleration, as compared to the original tests (which are still used for CAFE) at 68-86F and speeds below 60mph).
http://www.fueleconomy.gov/feg/ratings2008.shtml
explains the new ratings, and gives converters for the old MPG figures to compare to the new ones, besides viewing the MPG figures (both old and new) for a specific vehicle.