They quickly changed to a new DOHC engine rated at The GT model was offered as a soft-top convertible, the ST and GT were given a SOHC 8 valve 2.0 liter 97 HP engine. The Celica was again still available in the following trims: ST, GT, and GT-S as either coupe, liftback models. The Celicas first victory came in 1988 Cyprus in a non-WRC, however the Celica was victorious in the WRC Rally in Australia of 1989. As the GT-Four was the Ultimate Celica of the time it made its World Rally debut in 1988 of Tour de Corse and finished 6th.
The ST165 chassis front suspension for the AWD GT-Four kept MacPherson struts with an anti-swaybar and strut tower brace, the rear employed struts with trailing link and twin lateral links per side + an anti-swaybar. The North American version was rated 190 BHP, Toyota chose to keep the suspension the same and not modify it drastically. The All-Trac became available in the 1988 US model year, the All-Trac system was also offered with the Corolla, Camry, Previa but without the turbo for a limited time. In 1987 Toyota began to export the Celica GT-Four revised as the All-Trac Turbo in North America.
At the time the GT-S immediately took flagship as the Celica range and became the official Toyota rally car, for all 4 years of production. liter was rated at 190 HP which was the 3S-GTE engine. The turbo charged version of the GT-S 2. The GT-Four included full-time all wheel drive and a electronically controlled central locking differential. Soon after Toyota their own "Ultimate Celica" on the line: GT-Four ST165 in the Japanese domestic market (JDM).