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Toyota dropped the last gen celica for a couple reasons, the most blatant was sales. Think they sold less than 10k in 2004, and even fewer in '05 (half year for sales though).
You could argue that the newly released Scion tC was cannibalizing sales, though the celica GT-S was definitely more sporty than the tC but it did cost more.
Definitely wasn't looks though. I remember the praise it got in that department from all the car mags at its release in 2000.
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