Background
The Lancia 037 occupies a legendary place in rallying history, not only for its distinctive engineering but also as the last rear-wheel-drive car to win the World Rally Championship (WRC). Developed in the early 1980s by Lancia and its racing division Abarth, the 037 was purpose-built to compete in the fiercely competitive and technologically aggressive Group B category.
Development began in 1980, at a time when four-wheel-drive systems were starting to make their presence felt in rallying — most notably with the arrival of the Audi Quattro. Rather than follow this new trend Lancia doubled down on a lightweight, rear-wheel-drive platform, aiming to offset the traction disadvantage with superior agility, lower weight, and simplicity.
The base for the 037 was the Lancia Montecarlo, a mid-engined sports car, which was extensively modified for rally use.
The 037’s chassis was constructed using a tubular steel spaceframe at the front mated to the Montecarlo’s central structure, with lightweight Kevlar-reinforced fiberglass body panels crafted by Pininfarina. The result was a low, wide, purposeful shape — aggressive but beautifully proportioned. The suspension setup was fully independent and highly adjustable, a key to the car’s versatility across tarmac and gravel events.
Power came from a supercharged 2-litre four-cylinder engine, developed by Abarth and based on Fiat’s twin-cam block. Unlike the turbocharged engines favoured by many rivals, Lancia chose supercharging to provide instant throttle response, particularly helpful on twisty, technical stages. Early versions produced around 265 bhp, which later rose to over 300 bhp in Evo 2 specification.
To compete in Group B, Lancia was required to build at least 200 road-going homologation versions of the 037 — these were known as the Lancia 037 Stradale. Though visually similar to the rally car, the Stradale featured a detuned engine and a more civilised interior, making it a highly desirable rarity today.
The 037 made its WRC debut in 1982, but reliability issues and development delays meant it wasn’t fully competitive until the following year. In 1983, everything came together.
Lancia, with legendary drivers like Walter Röhrl and Markku Alén, won the manufacturers’ title, narrowly defeating Audi despite the German team’s four-wheel-drive advantage. This remains one of the most remarkable achievements in rally history — a rear-wheel-drive car beating the emerging dominance of AWD through sheer balance, driver skill, and relentless development.
By 1984, however, the 037 was outclassed. The evolution of Group B had accelerated dramatically, and Audi’s Quattro had grown more powerful and sophisticated. Soon, Peugeot’s 205 T16 and Lancia’s own successor, the Delta S4, would raise the stakes even further with mid-engined AWD layouts and immense power.
Though its reign was short, the Lancia 037’s impact was profound. It combined traditional engineering with cutting-edge rally design, and its 1983 title remains a romantic final stand for two-wheel-drive in top-level rallying. Today, it is celebrated not only for its beauty and balance but as a symbol of innovation, bravery and a golden era in motorsport.








