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What was the Subaru 1985 XT Coupe known for?

The 1985 Subaru XT Coupe is best known for pairing a turbocharged engine with all-wheel drive in a distinctive, aero-styled two-door coupe, effectively launching Subaru’s performance-oriented AWD image in the mid-1980s.


Beyond its bold look, the XT represented Subaru’s push into turbo performance and all-weather handling, blending rally-inspired tech with a practical, compact chassis. This article explores what the model was known for, its engineering, and its lasting impact on the brand.


Origins and design


When Subaru introduced the XT in the mid‑1980s, it signaled a bold move into sportier, technology-forward cars for the brand. The XT’s styling combined a wedge-like silhouette with features such as pop-up headlights and a compact two‑door cabin, creating a distinctive, performance-oriented presence in Subaru’s lineup.


Engineering and performance


Powertrain and drivetrain


To understand what the XT was known for, it helps to look at its core mechanical package. The car paired a turbocharged flat-four engine with Subaru’s all-wheel-drive system, delivering a compact yet spirited performance that was competitive for its class at the time. The standard setup typically included a five-speed manual transmission, with an automatic option in some markets.



  • Turbocharged 1.8-liter flat-four engine delivering brisk acceleration for a compact coupe

  • Permanent all-wheel drive (Symmetrical AWD) for traction in rain, snow, and slick roads

  • Five-speed manual transmission as the common configuration; automatic transmission available in certain markets

  • Turbo torque and power figures that offered a lively driving experience without heavy fuel penalties


That combination gave the XT its characteristic balance of everyday usability and enthusiastic performance, especially in poor weather or challenging road conditions.


Interior and technology


Inside, the XT offered a compact, driver-focused cockpit that matched its sporty exterior. While equipment varied by market and trim, the model commonly featured a two‑door layout with a small back seat, practical controls, and era-typical instrumentation, with some markets offering digital displays as an optional tech highlight for the time.



  • Two-door, compact sport coupe with a practical 2+2 layout in some versions

  • Bucket or sport seats and a driver-centric dash layout

  • Instrumentation appropriate for the era, with some markets offering digital readouts

  • Optional features such as a sunroof in certain trims


The XT’s interior aimed to balance sportiness with everyday practicality, reinforcing its appeal as a compact performance package.


Impact and legacy


The XT’s blend of turbo power and all-wheel drive helped redefine Subaru’s brand image in the 1980s, aligning with the company’s rally heritage and establishing a foothold for Subaru’s later performance-oriented AWD models. Today, the XT is considered a collectible classic among enthusiasts who value its distinctive styling and early turbo AWD technology.


What it means for enthusiasts today


For collectors and drivers today, the 1985 XT Coupe stands out for its historical significance as an early, purpose-built turbo AWD Subaru. Common considerations for owners include finding good examples with intact mechanicals, ensuring parts availability for the EA82T-era engine, and recognizing the car’s unique handling characteristics that reflect its era.


Summary


In short, the 1985 Subaru XT Coupe is known for introducing a turbocharged, all-wheel-drive sport coupe concept to a broad audience, pairing performance with practical all-weather capability in a memorable wedge-shaped package. Its lasting impact on Subaru’s identity and its status among collectors underscore its place in automotive history.

What was the most popular car in 1985?


The most popular car in the U.S. in 1985 was the Chevrolet Cavalier, with 422,927 units sold. The Ford F-Series was the best-selling vehicle overall (including trucks), while the Cavalier was the best-selling passenger car for that year. The Ford Escort was the third best-selling vehicle overall and a major competitor.
 

  • Overall best-seller: Ford F-Series (truck)
  • Best-selling car: Chevrolet Cavalier
  • #3 best-selling vehicle: Ford Escort



What does XT mean on Subaru?


On modern Subarus, "XT" designates a trim level that includes a turbocharged engine, providing more power and higher towing capacity compared to non-XT models. For the classic Subaru XT model from the 1980s and 1990s, "XT" stood for a unique sports car with a turbocharged engine and other advanced features like adjustable suspension. 
On modern Subaru models

  • Turbocharged engine: The "T" in XT stands for a turbocharged engine, which is a significant power upgrade. For example, the Outback XT has a 2.4-liter turbocharged boxer engine that produces 260 horsepower, compared to the base 2.5-liter engine that produces around 182 horsepower. 
  • Increased performance: This extra power makes the vehicle quicker and provides better performance, especially at high altitudes or when carrying a load. 
  • Higher towing capacity: Because of the more powerful engine, XT models have a higher towing capacity. For the Outback, this is 3,500 lbs, while non-XT models can tow less. 

On the classic Subaru XT model
  • Turbocharged engine: The original Subaru XT, produced from 1985 to 1991, featured a turbocharged engine as a key selling point. 
  • Advanced features: The XT also came with unique, advanced features for its time, such as an adjustable air suspension system that could raise or lower the vehicle for better ground clearance or aerodynamics. 



What was the 1985 XT coupe known for?


The XT was noted for its pronounced wedge shape, low coefficient of drag; aviation influences from the aircraft division of parent company Fuji Heavy Industry; and its host of features, either innovative or uncommon in the XT's class — including height-adjustable pneumatic suspension, digital dash, central locking ...



Is the Subaru Outback XT fast?


So this turbo engine is still down on power about 10%. See what it can do with the brake. Rev. Not bad true 0 to 60 came in at 7.15. Seconds.


Kevin's Auto

Kevin Bennett

Company Owner

Kevin Bennet is the founder and owner of Kevin's Autos, a leading automotive service provider in Australia. With a deep commitment to customer satisfaction and years of industry expertise, Kevin uses his blog to answer the most common questions posed by his customers. From maintenance tips to troubleshooting advice, Kevin's articles are designed to empower drivers with the knowledge they need to keep their vehicles running smoothly and safely.