1985 was a transition year for Subaru. The hatchbacks in base and DL trim carried over for all of 1985 with both front drive and “on-demand” 4WD configurations. The sedans, also offered in both forms, were completely new cars. More aerodynamic sheetmetal enveloped a bigger, plusher interior package. While the GL hatchbacks kept the 73-hp 1.8L pushrod engine (the base hatch retained its 69-hp 1.6L), the sedans all got one of the new 1.8L OHC engines that produced 82-hp in carbureted form, 94-hp with EFI, and 111-hp when turbocharged. Transmission choices involved the basic 5M/3A, but the DL hatch came with a 4×2 box while the top-line 4WD Turbo had a dual range 5spd.
Debuting in the US market in February 1985, gaining a 0.29 drag coefficient, made possible partially thanks to Subaru’s famous flat-four cylinder engine design, the XT arrived and was considered the most aerodynamic car on the market. Inside the theme was just as exclusive, with a cockpit design, digital gauges that were attached to the steering wheel, as to maintain visibility regardless of position, thumb actuated on demand 4WD switch in the center of the gear select, height adjustable suspension, the list goes on. A techno marvel of its time, the XT looked like nothing else on the road.
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