On 9 April 1987, the third-generation Prelude was released in the
Japanese domestic market and released later that year worldwide, being a 1988 model in North America. Featuring evolutionary styling from its predecessor, it shared design cues from the
Honda NSX that would be introduced later in 1990. The Prelude featured innovative features for its time such as a 0.34
drag coefficient, roof pillars made of high-strength metal and its signature feature, the available option of the world's first mechanical
four-wheel steering system available in a mass-production passenger car, which was later shared with the
Honda Ascot 2.0FBT-i sedan. The mechanical four-wheel steering setup used two
steering boxes, linked together with a dedicated steering shaft. Despite its complexity, it provided the driver additional benefits. At highway speeds lane changes required minimal steering input, and served as a safety feature providing more responsive and quicker maneuverability in adverse conditions. It also aided in low speed driving conditions such as parallel parking. The front and rear wheels would turn in opposite directions once the steering wheel had been turned 140 degrees. A '
Road & Track' magazine comparison between the Prelude and a
C4-series Chevrolet Corvette favored the Prelude in a slalom speed test. The third-generation Prelude was exclusively powered by variants of the
Honda B20A engine, a base carbureted version with a SOHC 12-valve valvetrain, or a DOHC variant with Honda's
PGM-FI fuel injection and 16 valves. The engine was tilted backwards by 18 degrees, which made it possible to make the hood lower than on the previous generation. It was well received by judges of the
European Car of the Year accolade for 1988, finishing third in a contest where the
Peugeot 405 was the runaway winner and the
Citroën AX came second. This was one of the best performances by a Japanese built or branded car until the
Nissan Micra won the award five years later. In 1987,
Road & Track published a test summary that shows the 1988 Honda Prelude 2.0Si 4WS outperforming every car of that year on the slalom, with a speed of , even besting exotics such as
Porsche and
Ferrari. For reference, the 1988
Chevrolet Corvette C4 took the same course at . The Prelude was ''
Wheels magazine's''
Car of the Year for 1987.
Facelift The facelift third-generation Prelude was revealed in Japan on 21 November 1989. The front and rear bumpers were revised on the new Prelude. The rear front bumper and rear tail lights featured clear indicators and a revised parking light design. Many of the interior parts were also revised, including the dash bezel, the door handle and window switches. The Japanese version of the Si with the B20A was rated 140 PS with the JDM engine and was rated for 37 MPG. In the US, the facelifted Prelude debuted for the 1990 model year, with the carbureted 2.0S model being discontinued. The fuel-injected 2.0 Si became the entry-level model, being supplanted by a new Si model with the B21A1 engine, with Si 4WS or
Si ALB (ABS) as optional trim models. The revised version of the B20A5, called the
B21A1 was available. It was bored to with a total displacement of 2,056 cc producing up to and had a special cylinder liner featuring FRM (fiber reinforced metal) that is reported to be extremely tough. This causes premature piston ring wear contributing to exceptionally high oil consumption. For the Canadian market, the S, SR and SR 4WS models were introduced for 1990. In 1991, SR ALB and SE models were introduced. The SE model was closer to the JDM and EDM models in that it was fully optioned with leather interior and was equipped with both 4WS and ALB.
Prelude INX Along with the facelift, a new Prelude model was introduced to the Japanese domestic market, the Prelude INX. It featured fixed headlights, with a front fascia very similar to the contemporary
Honda Legend coupe and
Honda Accord of the same time period. It also featured chrome trim on the headlights front and rear bumpers, side moldings, tail lights and both front and rear windscreens to enhance the focus on luxury rather than sportiness. The Prelude INX coincided with changes to North American lighting requirements in the United States and Canada, and a greater focus on safety was offered with available
anti-lock brakes and optional
driver's side airbag exclusively offered on the Si/SR/S models.
Prelude SiStates and Prelude SiTCV Honda released two new special limited edition trim models in Japan in 1989 for the facelift Prelude, the
Prelude SiStates and
Prelude SiTCV. These cars were a limited production run and very few were built. SiStates catalogues indicate 3,000 built. They both featured standard 4WS, ALB, Viscous limited-slip differential (LSD) transmissions, TCS (SiTCV only), leather-wrapped steering wheel and gear lever, extra sound-deadening insulation on the firewall and hood, and many more features that were usually options. The SiStates also featured a Japanese version of the 2.1 liter
B21A1 engine called the B21A rated at . Two major distinctions of the SiStates was that it was the same width as the Prelude sold in North America, from which it took its name, due to the wider side moldings. The other being that it was over 2.0 liters, a limitation in engine displacement in Japan for insurance reasons. The extra width and the larger engine combined to place the Prelude SiStates in a considerably higher
road tax obligation; while this slowed sales it also targeted some status hungry buyers. The SiStates model was only available with the MY8A LSD equipped automatic transmission. The SiTCV model was available with the MY8A automatic or the D2M5 5-speed manual gearbox. == Fourth generation (BA8/9/BB1/2/3/4; 1991)==