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The SP2 was the result of the Brazilian Volkswagen subsidiary filling the lack of sports cars available in the country by designing and building it's own independently from Volkswagen in Wolfsburg. Due to the Brazilian market being closed to imported cars, the only sports car made there around the late 1960's were the old Volkswagen Karmann Ghia and Karmann Ghia TC. In 1969 'Project X' was born to develop a new sports car that would fill the void in the market.
Out of that effort came both the SP1 and SP2, with the Sp2 being the more popular variant due to the underwhelming power of the SP1. Equipped with an air-cooled 1.7L flat 4 engine, the SP2 was good for a modest 65 PS (48 kW) of power and 83 lb-ft (113 Nm) of torque. Thankfully the cars kerb weight was kept to a low 890 kilograms. Even so, the 0-60 mph acceleration time was recorded around the 16 second mark, and the top speed 100 mph. Obviously those figures are not impressive, which the local thought as well dubbing the SP2 as the “Sem Potência”, meaning “without power”.
An SP3 concept was developed to right the wrongs of the SP2 with more power from a water cooled 1.8L engine. This concept never materialised at the factory, but Dacon made a prototype and offered conversion kits to SP2 owners who wanted better performance.