The chassis and suspension of the second generation were, however, refined in both performance and comfort; base models offered significant advances in sound-proofing, ride isolation, and road-holding.

Extensive experience Chevrolet engineers had gained racing the first-generation led directly to advances in second-generation Camaro steering, braking, and balance.

[4] High-performance configurations were initially available, but the marketplace changed as 1970s progressed with fuel crisis, higher insurance rates, and tightening emissions regulations.

[4] Besides the base model, buyers could select the Rally Sport appearance option, with a distinctive nose and bumper and interior upgrades, a Super Sport performance package, and the Z/28 Special Performance Package (priced at US$572.95)[1] featuring a new high-performance LT-1 360 hp (268 kW) 380 lb⋅ft (520 N⋅m) of torque 350 cu in (5.7 L) V8.

The LT-1, a Corvette engine built from the ground up using premium parts and components, was a much better performer overall than the smaller Trans-Am racing-derived 302 cu in (5 L) V8s used in 1967-69 Z/28s; greater torque and a less-radical cam, coupled with the 780 cfm Holley four-barrel,[1] permitted the less high-strung new Z/28 to be available with the 3-speed[1] Turbo Hydramatic 400 automatic transmission as an option to the four-speed manual for the first time.

The new body style featured a fastback roofline and ventless full-door glass with no rear side quarter windows.

The biggest changes came under the hood, due to an emissions-driven Federal mandate that all engines be designed to run on lower-octane regular-leaded, low-lead, or unleaded gasoline, necessitating reductions in compression ratios and horsepower production.

Production and sales dropped due to a 67-day corporate-wide strike at GM that coincided with the introduction of the 1971 models in late September 1970, along with a continued declining interest in the ponycar market fueled by skyrocketing insurance rates for high-performance cars.

The UAW strike at a GM assembly plant in Norwood disrupted production for 174 days, and 1,100 incomplete Camaros had to be scrapped because they could not meet 1973 federal bumper safety standards.

Some at GM seriously considered dropping the Camaro and Firebird altogether,[7] particularly while the corporation was under pressure to adapt its vast number of makes and models to difficult new regulations for emissions, safety, and fuel economy.

The Rally Sport option, with its chrome bumperettes on either side of an impact absorbing urethane grill surround, continued for one more year due to creative bracing behind the front sheetmetal.

A new Type LT model was offered in 1973, with a quieter and better-appointed interior, full instrumentation, Rally-style wheels, variable-ratio steering, sport mirrors, and hidden windshield wipers, among other upgrades.

[10] The 1974 Camaro grew seven inches (178 mm) longer, thanks to new bumpers required to meet federal standards and a forward-sloping grille.

Camaro sales increased to over 150,000 units, of which 13,802 were Z28s (the highest 2nd-generation Z28 production to this time) despite the energy crisis fueled by the Arab Oil Embargo.

[11] Mercury upsized the Cougar to an intermediate-sized personal luxury car to compete with the Chevrolet Monte Carlo and Pontiac Grand Prix.

SAE net power ratings (used since 1972) were taken from the engine crankshaft as before, but now all accessories had to be attached and operating, and all emissions equipment and a full production exhaust system had to be in place.

These power-robbing additions — along with stringent new emissions laws and the equipment they required — were instrumental in creating the vastly smaller power figures found in subsequent cars.

The manufacturers themselves also sometimes intentionally underrated engines for a variety of motives, notably avoiding provoking the insurance companies and federal regulators into enacting undesirable policies, but also sometimes to prevent lower priced models from stacking up too well on paper against their own more profitable high-end products.

Announced for this year was the availability of a leather interior option in the Camaro LT, but never saw the light of day as no production cars were equipped with real hide seats.

Only minor appearance changes highlighted the 1976 Camaro, most notably a brushed metal insert in the rear tail section on the LT model.

Intermittent wipers were offered as a new option in 1977, and the 250 cu in (4.1 L) I-6 became the standard engine for both the sport coupe and luxury LT models.

The 1978 Camaro featured a new body colored urethane front and rear bumpers, and amber taillight turn signals.

The Z28 models included a stripe package that was not deletable and featured the LM1 a 350 cu in (5.7 L) V8 with a four-barrel Quadrajet carburetor that produced 185 hp (138 kW; 188 PS) and 280 lb⋅ft (380 N⋅m) of torque, coupled to either a 4-speed manual or a TH-350 3-speed automatic.

It replaced the Type LT, and had a restyled instrument panel with a much flatter appearance than the previous wraparound design (although the gauges themselves remained in the same places as before).

The Z28 hood included a rear-pointing raised scoop with a solenoid operated flap which opened at full throttle, allowing the engine to breathe cooler air.

Z28s had new optional grey 5-spoke rims, a unique upper and lower front grill, and smaller revised graphics on its doors.

Due to emissions restrictions, U.S. Z28s came with two different engines: the majority received the 350 cu in (5.7 L) V8, available only with automatic transmission (except California, where it was banned entirely).

However, as the primary goal of computer control was emissions reduction, any performance gains in one area were lost in another, and horsepower dropped to 175 hp (130 kW; 177 PS).