The History of the Toyota Celica

It is 1998 and the Celica is clinging to life. The MR2 and Supra have been withdrawn to Japanese shores and the Celica is on life support. The current model of the Celica hasn't been truly redesigned since 1993...an eternity when you consider the short life spans of sporty cars. Although the Celica is officially produced until 1999 many US Toyota dealers don't even see the model on their lots.
Rumors have the Celica disappearing from the Toyota lineup entirely.

Toyota decides to completely revamp the Celica and give the market what it is looking for. Aiming for the market that Honda has dominated so well for the past few years with the Civic/Integra, Toyota aims directly for the top of the line Integra GS-R. No longer building
the Celica as a sporty/luxury car, the Toyota Celica is now designed for the inexpensive performance minded market. Extreme, Young and Racy is the new target Toyota is hoping to meet with the new Celica...

Design-wise Toyota turns to its CALTY design center to find a design that appeals to the younger market. Turning outside the Japanese designers Toyota hopes depart from the conservative "safe" image that Toyota is all too well known for. Below are the Sketches
that Toyota decides to aim for.

Aiming squarely for the top of the Integra line, Toyota turns to Yamaha to produce an engine that outperforms the Honda version in every way. The Honda patent for variable valve timing (VTEC) expires and Toyota is now allowed to introduce its version variable valve timing in the form of VVTl-i (Variable Valve Timing with lift and intelligence). A technology which is superior to Honda's VTEC Toyota and Yamaha introduce this new technology in the Celica with the
2ZZ-GE engine. In a factory built engine Toyota nearly matches Honda's hand assembled, port and polished Integra Type-R, and does away clearly dominates Honda's stock output in the GS-R (160HP)...clearly an accomplishment.

The first the public sees of the new exciting Celica comes in the form of the Toyota XYR concept at the Detroit International Auto show in 1999....

With rave reviews, Toyota almost immediately begins production for a release later in the year. Aside from the huge aluminum spoiler the XYR basically becomes the new seventh generation Celica. Toyota releases the Celica in two trims worldwide...the GT with a 140HP engine with VVT-i and the GTS with a stated 180HP or 192 HP from 1.8L with VVTl-i. Europe receives the GT-S one year later.

North American GT

North American GT-S

from here