Toyota is working on a replacement for the Toyota Celica based on the Scion tC (photo above). Scion is Toyota’s budget sporty car arm (Proton?) in the USA targetted at young buyers.

The Toyota Celica’s 1.8 engine will be upgraded to a new 2AZ-GE (not final codename) engine making 250hp via an aggresive VVT-i profile or some form of forced induction.

This is a direct aim at the Honda Integra Type-R/Acura RSX.