Autoblog is reporting that Toyota is doing away with the Avalon and instead is planning on replacing it with an extended Camry.
http://www.autoblog.com/2008/07/12/l...s-next-avalon/
Update: From Edmunds.com
"With development of the next-generation 2012 Camry well underway, Toyota also is studying whether to cancel the planned replacement for the Camry-based Avalon, which currently is slated to go into production in Kentucky in early 2010.
In its place, Toyota may opt to produce a long-wheelbase Camry for such markets as North America and the Middle East. The redesigned Camry currently is slated to begin production in mid-2011."