Lots-o'-Huggin' Bear

Lots-o'-Huggin' Bear, also known as Lotso, is the main antagonist of Toy Story 3.

Toy Story 3
Lotso was first introduced riding over to Woody, Buzz Lightyear, and the other toys in a dump truck. He greeted them in a friendly manner and showed them around Sunnyside. He assigned the new toys in the Caterpillar Room, knowing that the toys there were treated abusively by the younger kids. After the toys experienced a rather rough playtime with the toddlers in the room, Buzz decided to find Lotso to ask for his friends to be moved. When Buzz finally reached Lotso, Lotso agreed but only to Buzz's moving, knowing that Buzz could prove to be useful to him. However, he refused to listen to Buzz's plea to move the rest of the toys, causing Buzz to refuse his offer, unwilling to abandon his friends. Believing Buzz was too useful to give up, the vile teddy bear had his henchmen capture him and hold him in the Time-Out Chair. He then used a Buzz Lightyear action figure manual so he could reset him to his demo mode. Lotso then made Buzz think he was a real space ranger again and manipulated him into believing that the toys were minions of Emperor Zurg. Lotso made Buzz kidnap and lock the other toys up, with Mr. Potato Head being put in "The Box".

The next night, while Lotso was asleep, Woody, who had escaped Sunnyside earlier, managed to save his friends and formulated a plan to escape Sunnyside, including the attempt to get Buzz to rejoin their side. When the toys tried to leave Sunnyside via the garbage chute that the Chatter Telephone had told Woody about earlier, Lotso and his henchmen caught up with them. He tried to coax the toys into coming back to the daycare to be a family again, but the toys retorted, claiming that Sunnyside was not a family lounge but a prison, that Lotso was a liar and a bully, and that they would not join the family of Lotso's. This prompted Lotso to call on his cohorts to push the toys into a dumpster, believing that disposing them as trash would be better. Ken, who had been Lotso's henchman, suddenly appeared and tries to stop Lotso, but Lotso noticed Ken for loving Barbie and threw him across the dumpster when he realized that Ken was no longer in league with him anymore. After Woody caught him in mid-fall, Ken then exposed Lotso as the one who has turned the toys into a pyramid, the top of which Lotso had placed himself on. When Lotso told the toys that not a single kid would ever love a toy, Woody attempted to remind Lotso of his old owner, Daisy. (Mad that Daisy had replaced him with another Lots-o'-Huggin' Bear, he arrived at Sunnyside with Big Baby and Chuckles the Clown. Lotso and Big Baby had risen to power and rigged the daycare center, while Chuckles had been taken home to Bonnie's house.) However, Lotso instantly becomes upset as he did not want anything to do with Daisy, claiming that Daisy had threw him out, replaced him, and never loved him. Woody then pulled out Big Baby's old name tag (which was handed over to him by Chuckles during his stay at Bonnie's House earlier) and threw it to Big Baby, who picked up the name tag and, remembering Daisy, sniffled "Mama." Lotso suddenly snapped out at Big Baby, snatched the name tag from him, and smashed it with his cane, causing Big Baby to break into tears. He then poked Big Baby abusively with his mallet for being a dummy and continued to harangue that the toys are all just trash that awaits disposal. Without warning, Big Baby, who had become fed up with Lotso's lies and treachery, picked up Lotso, causing him to drop his mallet. Lotso ordered Big Baby to put him down, but Big Baby threw him into the dumpster, closed the dumpster lid on him, blew a raspberry directed at him, and allowed the toys to escape. Unfortunately, one of the Aliens became stuck by the dumpster's lid, and as Woody rushed back to free the alien by slightly opening the lid, Lotso, having caught sight of Woody through the opening and hungry for revenge for being humiliated, suddenly reached out, grabbed Woody, and pulled him into the dumpster, prompting Andy's other toys to rush to his rescue, just as the garbage truck arrived and poured the contents of the dumpster into the truck. The truck then took the toys to the Tri-County Landfill, where Lotso was almost killed by the shredder before being saved by Woody and Buzz. The toys then realized that the next place where they were heading to was a central incinerator. Lotso, noticing an emergency stop button, reached the bottom of a ladder below the switch, and with help from Woody and Buzz, he climbed up the ladder to reach the button. As Woody shouted for Lotso to push the button, the sinister, cold-hearted teddy bear glared at the toys menacingly, shouted an insult back at Woody as he refused to activate the button, and ran off, leaving the toys to die in the incinerator since he still believed all toys were subject to abandonment by their owners and nothing but trash. The toys were able to escape from being incinerated, thanks to the giant crane that the Aliens had commandeered. Afterwards, Hamm and Slinky expressed their desire for revenge on Lotso for almost getting them killed, but Woody convinced them to let him go, knowing that Lotso just needed to regain the love he had lost for many years as punishment. Having escaped from the plant, Lotso tried to find a way out of the dump, but was forced to go limp when a garbage truck pulled up next to him. A garbageman stepped out of the truck, discovered Lotso, and claiming he once had a Lots-o'-Huggin'-Bear when he was a kid, decided to take him along. Lotso was last seen tied up on the truck's front grill with a few other toys the same garbageman had collected. Lotso reacted in horror when he found himself in that unwanted predicament, but then one of those toys, a frog, told him to keep his mouth shut so that the junkyard filth and insects would not get in, something which Lotso instantly obliged to.

It is unclear what becomes of Lotso after Toy Story 3, but he most likely remains strapped to the truck like the other garbage toys.

Personality
At first appearance, he seemed to care for the toys well being and seemed friendly. However, this facade merely concealed his true nature, which was an insane, sadistic tyrant. This nature was mostly brought about from his perceived betrayal from Daisy. He also seemed to developed nihilistic tendencies, as evidenced by his statement that all toys were ultimately going to be tossed out like garbage, and there is no salvation for them.

Toy Description
From Official Website:

"Lots-o'-Huggin' Bear is a jumbo, extra-soft teddy bear with a pink and white plush body and a velvety purple nose. This lovable bear stands fuzzy heads and shoulders above other teddy bears because he smells like sweet strawberries! With a smile that will light up your child's face and a belly just asking to be hugged, Lots-o'-Huggin' Bear is sure to become a bedtime necessity. Stain-resistant. Spot clean plush surface with a damp cloth."

Trivia

 * In a viral marketing campaign, Pixar posted two fake commercials, for a "real" Lotso teddy bear manufactured in 1983, on YouTube. One was a typical American toy commercial from the 80's, and the other was done in Japanese. Both feature the "Toy Story Collection" edition of Lotso, that comes with the Certificate of Authenticity.
 * Lotso made a cameo appearance in Up when he was first spotted next to Dee's bed when Carl's house flies past her window outside, and it was later confirmed that he would be a new character in Toy Story 3.
 * When Lotso is helped to the Emergency Stop button on the trash conveyor belt, instead of pushing the button to stop the belt and save the other toys, he glares at them and yells, "Where's your kid now?" This is a wink to the Internet meme "Where is your God now?", a sarcastic way of inducing fear in a victim (the internet meme in turn originates from a line in an Billy Crystal routine making fun of the incongruity of 'Edward G. Robinson' being cast in The Ten Commandments (1956): "Where's your Messiah now, Moses?").
 * When the toys are saved from the incinerator, Hamm and Slinky want revenge on Lotso for almost getting them killed, but Woody tells them he's not worth it. This may be because of Woody's memory of what has occurred between him and Stinky Pete in Toy Story 2, only this time, Woody is letting Lotso learn love on his own when the garbage man finds him and ties him to the front of his truck.
 * Coincidentally, Lotso's fate by the end of the film is similar to Stinky Pete's. Both are unexpectedly found, and then they find themselves in a unwanted predicament: Stinky Pete becomes stuck with a girl who likes to draw on her toys, while Lotso becomes a fly attractant for a garbage truck. However, after Toy Story 2, it has been stated that Stinky Pete got used to it and he liked it, while it is unclear if Lotso, after Toy Story 3, has ever got used to it because it has never been stated.
 * His thick Southern accent, initially soft-spoken demeanor, and many of his iron fist policies as "Warden" including throwing uncooperative prisoners into "the box" are clear references to "The Captain", Strother Martin's character from Cool Hand Luke (as well as Lotso' voice actor Ned Beatty's previous character, Sheriff J.C. Conners, from White Lightning).
 * According to the official movie magazine for Toy Story 3, Lotso was originally created for A Tin Toy Christmas (which later became Toy Story).
 * He is one of the most evil of all Disney villains as he forced Big Baby and Chuckles to follow him even though they didn't want to, as good as broke all the toys in The Caterpillar Room and almost killed Woody, Buzz, Bullseye, Mr. and Mrs. Potato Head, Slinky, Rex, Jessie and Hamm.
 * He was originally conceived as a teddy bear from the early 80's Care Bears toy line. This idea was not dropped until after the storyboard was completed and can be seen in the tie-in book The Art of Toy Story 3.
 * In the same source, the animators also admitted that they increased his cruelty in the final version in order to ensure that people understood that he got exactly what he deserved, as the test screenings had some kids still sympathizing with him after his backstory was revealed.