The 2.0 L non-turbo engine was replaced with a 2.3 L SOHC I4 engine, rated at , 127 lb·ft The 2.3 L engine was offered only in the US market, because the larger engine would have obligated Japanese consumers to pay more annual road tax, thereby affecting sales, as well as the larger engine conflicted with Japanese government regulations concerning maximum displacement for cars classified as "compact". All Impulses received a Lotus-tuned suspension beginning in the 1988 model year, which consisted of redesigned sway bars, stiffer dampers, and a change in previous spring rates.