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The Tercel is a subcompact manufactured from 1978 to 1999 across five generations, in five body configurations — sized between the Corolla and the Starlet. Manufactured at the Takaoka Plant in Toyota City, Japan, and sharing its platform with the Cynos (aka Paseo) and the Starlet, the Tercel was marketed variously as the Corolla II — and was replaced by the Echo in 2000. It was also known as the (Japanese: Toyota Corsa) and sold at different Toyota Japan dealerships dedicated to particular core models. The name "Tercel" derives from the Latin word for "one third" as the Tercel was slightly smaller than the Corolla — much the way "tiercel" refers to a male falcon, which is one-third smaller than its female counterpart. First generation (1978-1982) The Tercel was introduced in Japan in 1978, and in the United States in 1980; it was the first front-wheel drive vehicle ever produced by the automaker. Toyota named it the Corolla Tercel, hoping that the Corolla image — long known for quality and durability — would bring buyers to the new model. The Tercel's front-wheel drive design ensured that the vehicle delivered maximum interior space in a small package. It was originally sold as either a two-door coupe or a three-door hatchback, with each model powered by a 1.5 L SOHC four-cylinder engine producing 60 hp (45 kW). Transmission choices were either a four- or five-speed manual or a three-speed automatic. The new front-wheel drive design in the Tercel, unlike their previous front-wheel drive designs, did not have the engine transversely mounted. Rather, the engine was mounted longitudinally, such that the transmission was mounted under the floorpan, as was standard in a rear-wheel drive car. Unlike a rear-wheel drive car, the transmission had a ring and pinion gear on the front part of the transmission, underneath the engine. Halfshafts then extended from the transmission to the front wheels. For 1981, the Corolla Tercel received a new 62 hp (46 kW) A engine for improved power and drivability and lower emissions. Choice of bodystyles increased as well, with the addition of a four-door sedan. Second generation (1983-1986) Toyota redesigned the Tercel for 1983 and renamed the car simply "Tercel". The second generation Tercel was available in three- or five-door hatchback models or a four-door station wagon. The station wagon, known in Japan as the Sprinter Caribbean (Japanese: Toyota Sprinter Carribean (Carib)), was also available with either front- or four-wheel drive. The four-wheel drive model could be equipped with six-speed manual transmission, and could be shifted from two- to four-wheel drive without coming to a stop. The sixth gear it carried was an "Extra Low" (EL) first gear, a standard transmission gear with a very low (4.71:1) gear-ratio. The EL gear generated a 17.6:1 final drive ratio, giving the driver the torque needed to extract the vehicle from conditions which otherwise may have trapped it. Because of its low gear-ratio, it was suitable only for very low-speed use on loose or slippery road surfaces (such as snow, gravel, or sand.) Also included with the four-wheel drive model is a inclinometer above the radio and air conditioner that measures the tilt of the car. Standard front-wheel drive vehicles (and four-wheel drive wagons not equipped with the six-speed manual transmission) came with either a three-speed automatic or a five-speed manual transmission. The least expensive model, the base three-door, was available with a four-speed manual only. The new Tercel 4WD was built from existing pieces in the Toyota inventory. The engine, transaxle and front wheel drive system was from the existing Tercel. The coil-sprung rear axle was taken from the Corolla. The only part specifically designed for the new Tercel 4WD was the transfer case, built into the transmission. Normally, the car would be operated with front-wheel drive. When the driver pulled the 4WD selector lever back into four-wheel drive, or pressed a button on the gear selector for the automatic transmission, the power was split 50/50 between the front and rear axles via a direct mechanical coupling. There is no conventional center differential, so the four-wheel drive system could be used only on loose or slippery surfaces; otherwise the drivetrain would experience severe wear, and handling would be compromised. The third power option (which was only available on the six-speed manual) was low range. This isn't the same as the low-range power option found in a truck or conventional SUV, as the Tercel lacked a high-range/low-range transfer case. When the lever was placed in four-wheel drive mode it became possible to downshift the vehicle from first to EL. Europe Versions available in Europe: 1.3 GL (3-door hatchback, 5-door hatchback) 1.5 GL (3-door hatchback, 5-door hatchback) 1.5 4WD (5-door estate, only version from 1986 onwards) Third generation (1987-1990) In 1987, Toyota introduced the slightly larger third generation Tercel with a new 12 valve 78 hp (58 kW) I4 engine which featured a defective variable venturi carburetor, replaced under an extended warranty and in 1988 and later models with improved carbs and later, EFI. Other improvements included revised rack-and-pinion steering and a newly-designed, fully-independent suspension. The Tercel continued in its role as Toyota's least expensive vehicle. In 1988, Toyota introduced the Tercel EZ with less standard equipment: vinyl upholstery, a four-speed manual transmission, rubber mats instead of carpeting, and a deleted passenger's side sunvisor. For the 1990 model year, the Tercel was available as either a three or five-door hatchback or a two-door sedan, the wagon having been upgraded to the larger platform used for the Sprinter Carribean (Carib). Also discontinued for 1990 was the four-wheel drive system; the Tercel was then only available with front-wheel drive. Hard to find is the Tercel Deluxe 4-door Liftback. Made only from 87 to 89, this model which came standard with a 5-speed manual transmission, custom wheels and rear defrost. Non-motorized two-point passive seatbelts for the front-seat driver and passenger were introduced in 1990. Fourth generation (1991-1994) Toyota introduced the fourth generation Tercel in 1991 as either a two-door sedan or four-door sedan and powered by either a 1.5 L 3E-E engine producing 82 hp (61 kW) at 5200 rpm (and 89 lb-ft (121 N-m) of torque at 4400 rpm) or 1.5 L 5E-FE 16v DOHC producing110 hp (82 kW). In Japan, the Tercel was also offered as 3-door Hatchback and 4WD versions. Hatchback models were VC, Joinus, and Avenue. Trim levels for Sedan were VE, VX, and VZ. The VZ is powered by 5E-FHE engine. The higher level Japanese sedan had different tail lights and better equipped interior than the export models. North American models were Base Coupe, DX Coupe, DX Sedan, and LE Sedan. Colour-keyed bumpers, full wheel covers, and folded rear seat were optional on the DX, standard on the LE. The LE had red trunk garnish similar to Japanese model. 1993 saw a minor exterior redesign to the front and rear fascias and the addition of a standard driver's side airbag and available anti-lock brakes. The Tercel was carried over to 1994 with no major changes — Haloalkane, a non-CFC refrigerant was used in the air conditioning system. Fifth generation (1995-1999) For 1995, Toyota introduced an all-new Tercel. The new design offered a stiffer body with better handling and was one of only a handful of cars in the U.S. to have OBDII in 1995. Retaining its compact packaging and high quality, the new Tercel sported a completely redesigned exterior and an all-new engine. The Tercel now also offered standard driver's and passenger's side airbags in the United States, but only a driver's side bag for Canada. As well, three-point seatbelts for front and outboard rear passengers and adjustable shoulder-belt anchor points for front seat passengers were installed on four-door models. All models met federal standards for 1997 side-impact protection, and offered anti-lock brakes. The interior emphasized a user-friendly environment, pushing the dash further away, but bringing the switches closer, which gave passengers a feeling of spaciousness and comfort. The all-new DOHC 1.5 L I4 engine provided 93 hp (69 kW) and 100 lb-ft (140 N-m) of torque, offering a 13 percent power increase over the previous generation as well as a 15 percent increase in fuel economy. The new 5E-FE engine gets 45 mpg-US (5.2 L/100 km; 54 mpg-imp) on the highway with a 5 speed manual transmission, making it the most fuel-efficient four-cylinder car of its time in the United States collectively, these upgrades were considered to move the affordable Tercel solidly into the realm of vehicles one buys out of choice, rather than because it is the only one in its price range. Even with its upgrades, the Tercel remained Toyota's entry-level car. For 1997, all Tercels were available only in the CE (Classic Edition) trim level and incorporated many of the standard and optional items from previous base and DX models. All Tercels came standard with a new 13 inch wheel and tire combination. Inside, the Tercel received a revised dashboard with rotary ventilation controls. Also, along with all Toyota models, the Tercel received revised seat fabric and door panels. The RedHawk and WhiteHawk editions were introduced in addition to the BlackHawk trim already offered, which came standard with air conditioning, 185/60R14 tires on custom wheels, a rear spoiler with integrated brake light, and hawk symbols to identify the special model.

Dimension growth The Tercel was meant to be smaller than the Corolla, which it always was throughout its production. However, both the Tercel and the Corolla grew in size, becoming larger than their original sizes; and by the end of its production, the Tercel became almost identical in size to the North American-market '75-'78 Corolla that was current at the time the Tercel was first introduced back in 1980. Asia In Thailand, Toyota reworked the Tercel with different nose and tail, and called Soluna. The Soluna AL50 was powered by 1.5 liter 5A-FE engine, and campaigned as Asian Family Car. The plain Soluna was a big seller in Thailand. Trim levels are XLi, SLi, and GLi. Only the XLi and GLi were sold in Indonesia, where the XLi was common for taxi. Based on the GLi, the Soluna S Limited with body kits was offered for a short time. Europe and Japan In Europe and Japan, the Tercel was introduced in 1980; however, in some markets only the sedan was known as the "Tercel," while the hatchbacks were known as the Corolla II. Only the first two generations were sold officially in the UK and Ireland, with the hatchbacks bearing the Tercel name (however used Japanese imports of later Tercels and Corolla IIs also exist). Both models normally came with a turbocharged 1.5 L diesel engine, although European Tercels were available with several different engines. The Corolla II was a completely different model from the Corolla, although the latest European Corolla has a hatchback version which is based upon the Japanese Corolla II. Some people referred to this European model as the Corolla II, calling the sedan version the Corolla. The name in Japan of Tercel wagon is called Sprinter Carib (first generation (1982-1988) only).

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