Japanese automaker Toyota is preparing to bring back the MR2 and Celica sports models, while turning the GR division into a separate sports brand, Autocar reports.

The company's new strategy involves expanding its lineup for sports car enthusiasts, including the creation of models with gasoline and hybrid powertrains. The GR division, formed on the basis of the Gazoo Racing team, currently produces sports versions of the Yaris, Supra, and 86.

However, Toyota intends to raise the GR to the level of a separate brand, making it comparable to BMW M or Mercedes-AMG. The first model to bear the GR badge will be the GR GT supercar, which will then be joined by new sports cars.

One of the key projects will be the revived Toyota MR2, a mid-engine compact sports car that could return to the market after a long hiatus. In parallel, Toyota is preparing a new generation of the Celica. It is expected to be the basis for Toyota's next World Rally Championship challenger.

Development of the MR2 is already in full swing. Toyota is testing a prototype on the basis of a modified GR Yaris, where the engine has been moved from the front axle to the rear. The test car even participates in Japan's Super Taikyu endurance race series, which enables engineers to test the reliability and characteristics of the new power unit in real conditions.

For the MR2, Toyota is developing a new 2.0-liter four-cylinder G20E engine. In the standard version, it can develop about 400–450 horsepower, while in the racing version—more than 600 horsepower.

Moreover, the engine is originally created with the possibility of use in hybrid and plug-in hybrid systems. The central location of the engine should solve one of the main problems of powerful front-wheel drive cars: the overload of the front tires and the tendency to poor controllability. In the prototype, the engine works with an all-wheel drive system, and the system is able to redistribute traction between the front and rear axles; this enables to maintain the flexibility and agility inherent in the MR2, while increasing the stability of the car.

Toyota chairman Akio Toyoda, known for his love of motorsport and acting under the pseudonym “Morizo,’ personally participated in the testing of the prototype. According to company executives, the new approach means abandoning the previous strategy.

First, Toyota began to produce commercially profitable cars, but now the company is ready to create narrowly specialized models, which, although they may not ensure large sales, but shape the brand’s image.