
July 1981 saw the 2nd generation, a complete redesign of the entire Celica line-up, one obvious change was that the car now featured retractable headlights. Underpinings were shared with the Toyota Soarer with a little magic dusted on them from Lotus. The new 5M-GE engine still displaced 2.8 liters, but now sported double overhead cams. February 1982 saw the introduction of a new engine to the lineup , the 145hp 2.0ltr turbo (M-TEU)
Changes on the 1984 models included engine modifications, the 5M-GEU upto 175hp, and ECT-S electronic controlled fully automatic four-speed. A water-cooled intercooler is newly adopted for the turbo model M-TEU engine, maximum horsepower 160ps/5400rpm.

The next major change was 1986 when the Supra was finally given its own identity. No longer part of the Celica range, the 1986 Supra was equipped with a 3.0 liter DOHC engine and retained the four-wheel disc brakes and all-independent suspension of its predecessors. In 1987, Toyota added a turbocharged model to the line, making it the first Toyota model to be available with both a turbocharged engine and anti-lock brakes. The 1987 Supras were available with an optional targa-type Sport Roof for open-air driving.

With the exception of minor styling updates, the next major change occurred in 1993, when the Supra entered the realm of "supercars." Available in both Turbo and non-Turbo guise, the new Toyota Supra was a radical departure from Supras of old. Performance was now the name of the game, and many weight saving measures were employed -- Toyota went so far as to equip the vehicle with hollow carpet fibers and make the rear spoiler (optional on Turbo models) hollow. The Turbo model was hailed by all major magazines as a true worldbeater. With 280-horsepower, the vehicle was capable of 0-60 mph sprints in under 5 seconds, and carried on to an electronically-limited top speed of 112 mph.
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