Some car historians contend that the MR2 was Lotus-designed. This is a reference to the Lotus M90 (a.k.a. the X100) project, but this was scrapped after a single prototype was built. This used the same engine and gearbox as the MR2. At the time, Toyota, along with the Chapman family was a major share holder in Lotus, but General Motors later acquired majority control. Lotus Engineering, a prolific consultancy company forming part of Group Lotus but separate from Lotus Cars, were heavily involved in the designing the 4AG series Toyota engines (in the first MR2s) and the ZZ series engines in modern Toyotas. However, the MR2's suspension and handling were designed by Toyota with the help of Lotus engineer Roger Becker.
The MR2's life began in 1976 when Toyota launched a design project with the goal of producing a car which would be enjoyable to drive, yet still provide decent fuel economy. Initially, the purpose of the project was not a sports car. The actual designwork began in 1979 when Akio Yoshida from Toyota's testing department started to evaluate different alternatives for engine placement and drive method. It was finally decided to place the engine transversely in the middle of the car. The result was the first prototype in 1981, dubbed the SA-X. From its base design, the car began evolving into an actual sports car, and further prototypes were tested intensely both in Japan and in California. A significant amount of testing was performed on actual race circuits such as Willow Springs, where former Formula One driver Dan Gurney tested the car.