The second generation XR4x4 was introduced in 1987 at the same time that the Sierra Sapphire was launched. This was based on the revised Mark Two Sierra bodyshell again coupled to the Cologne V6 2.8i engine, this was to be later replaced with the Cologne V6 2.9i engine. This model differed in larger headlights, slightly different shape backlights and larger windows. The interior was changed with different colour trim, revised door cards and headlining. Options now included heated windscreen, headlight wash/wipe, electrically heated door mirrors and air conditioning.

The only great surprise at the time was that the 4x4 running gear was never mated to the Sapphire bodyshell, this didn't happen until 1990 when the Cosworth 4x4 was introduced to the Ford range. Ford did produce a 4x4 2.0i Ghia Sapphire for a limited time but this was produced in very small numbers.

1987 Sierra 2.8i XR4x4

Standard features on the XR included brake discs all round, colour coded tailgate spoiler, seven spoke RS style 5.5 x 14" alloys fitted with 195/60VR x 14" tyres, tilt or slide sunroof, electric front windows, electrically operated and heated door mirrors with body colour housings, wide black bodyside mouldings with black insert, colour coded bumpers with black insert, variable speed windscreen wipers, central locking, integral front fog lamps and finally a stereo radio cassette c/w six speakers and separate amp (model ECU2). List price in June 1987 was £13,676.29 rising to £13,990.85 by September 1987.

Listed as extras on the XR were anti-lock brakes (£953.64), headlamp wash/wipe (£147.56), towbar (£301.20), heated windscreen (£106.25) and air conditioning (£733.48).

Standard colours available were still Diamond White or Rosso Red. Also available, at extra cost, were Black (£111.39), Mercury Grey or Moonstone Blue (all metallic colours £157.01). The main seat fabric was Astral available in one shades only, Shadow.

The Estate version was also bought into line with a change in colour available and trim. Standard colours available were now Diamond White, Ivory, Galaxy Blue, Rosso Red and Burgundy Red. Also available, at extra cost, were Black (£111.39), Stratos Silver, Silica Gold, Willow Green, Crystal Blue, Regency Red, Chestnut or Mercury Grey (all metallic colours £157.01). The main seat fabric was Astral available in Bluestone, Shadow or Taupe (dependant on the body colour of the car). List price in June 1987 was £14,791.38 rising to £15,131.59 by September 1987.

The Mark Two 2.8i was available on a D, E, or F plate only.

1988 Sierra 2.8i XR4x4

The only change to the 1988 model was in the body colours, Crystal Blue having replaced Moonstone Blue. Prices were still as per September 1987.

1989 Sierra 2.9i XR4x4

The 2.9i was introduced in January 1989, this was basically the same engine with six port heads, new engine management system (EEC-IV) and longer crank. The change in engine coincided with a different gearbox, the MT75 which was deemed more reliable and less baulky than the old Type 9. There was a break of about eight months in production caused evidently by problems with the MT75 gearbox. Again the interior was changed to include soft feel headlining, electric windows all round and rear seat courtesy lights. The main trim was still Astral in Shadow shade. Heated windscreen, electrically heated wing mirrors, quartz analogue clock, lights on audible warning, graphic information module and headlight wash/wipe all became standard. This bought it more into line with the Ghia models.

The 2.9 model was introduced with a list price of £15,750 with road tax, delivery and number plates an extra £375 making a total of £16,125. The only options listed were Black paint (£130), Metallic paint (£175), ABS (£995) and Air Conditioning (£850).

1989 Sierra GLS 4x4

Ford also introduced a 2.9i GLS 4x4 in April 1989. This was basically an XR4x4 but without certain key features. The running gear was identical so offered the same performance for about £2,000 less. Insurance was also cheaper for these models as they were deemed as not so desirable.

Standard features on the GLS included brake discs all round, black tailgate spoiler (different shape from the one fitted to the XR), headlamp wash/wipe, white wheel covers fitted to 5.5x14" steel wheels, tilt or slide sunroof, electric front windows, electrically operated and heated door mirrors with body colour housings, narrow grey bodyside mouldings with cobra red insert, mid grey treatment below bodyside moulding to match bumpers, grey bumpers with cobra red insert, variable speed windscreen wipers, central locking, integral front fog lamps and finally a stereo radio cassette c/w four speakers (model 2005).

Listed as extras on the GLS were alloy wheels (Ghia style pepperpots or RS style seven spokes), anti-lock brakes, heated front windscreen plus an upgrade for the stereo to model 2007 c/w seperate amp.

Standard colours available were Diamond White, Radiant Red, Galaxy Blue and Burgundy Red. Also available, at extra cost, were Black, Stratos Silver, Mercury Grey, Tasman Blue, Aqua Jade, Magenta or Olympic Gold. The main seat fabric was Strobe available in three shades (dependant on the body colour of the car) Shadow, Bluestone or Mace.