With Kei car sales shrinking overall and the Cervo losing market share, sales were dropping precipitously. In February 1987 the second-generation Cervo received its third and final update. The Turbo was discontinued and the lineup rationalized to two versions, the sporty CS-G with a 5-speed manual and the lower grade CS-D with either a 4-speed manual or the 2-speed automatic. As further rationalization, all models now had roll-type safety belts (hitherto, CS and CS-D versions had come with fixed belts), front disc brakes and air conditioning.