Toyota's magazine explains the AE86 this way: the first letter is the engine family, the A series; the second letter is the model family, the Corolla; and the two digits follow (source 1). Wikipedia adds that the 8 marks the generation, the E80 Corolla, and the 6 the version within it; the AE85 was the same car with the smaller 3A-U engine, and the AE82 the front-wheel-drive version (source 3).
The cars on this site follow the same rule. The MR2 went from AW11 with the 4A-GE, to SW20 with the 3S-GTE, to ZZW30 with the 1ZZ-FE; the Supra from JZA70 with the 1JZ-GTE to JZA80 with the 2JZ (sources 4, 5). In each case the leading letters match the engine family, and the letter after them stays the same for the model: W on all three MR2s, A on both Supras. That pattern is our reading of the codes, not Toyota's statement. The MR2 Wiki confirms that SW20 covers every second-generation MR2 with a 3S engine, while the American car with the 5S engine was the SW21 (source 6).