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General Motors introduced an all-new range of medium sized family cars to bring its model range up to date for the new decade. The British-built version of the car was called the Vauxhall Cavalier, while its German twin were sold as the Opel Ascona. Both of these nameplates were established and well-known in all of the countries where the car's predecessor was sold. This incarnation of the car had front-wheel drive and a hatchback bodystyle to run alongside the saloon. The engine line-up included 1.3 L and 1.6 L petrol units as well as a 1.6 L diesel, with larger engined models to go on sale in the near future. The new car was also sold by other branches of General Motors, including Chevrolet in the USA and Holden in Australia.
After 11 years on sale, during which time it was sold as a Hillman, Chrysler and finally a Talbot, production of the Avenger finally ceased. It had gradually declined in popularity following the launch of the more modern Horizon and Alpine models during the late 1970s. Peugeot's takeover of the European Chrysler facility in 1979 seemed to spell the end for the car.
Talbot's entry-level model, the Sunbeam, also ceased production and was succeed by the Talbot Samba—a compact three-door hatchback which used the same underpinnings and bodyshell as the Peugeot 104.
British Leyland announced the end of Austin Maxi production, almost 13 years after the car first went on sale. The Maxi's successor – which also replaced the Allegro – went on sale at the start of 1983. Meanwhile, British Leyland enjoyed great success with its new Metro compact hatchback.
The Leyland Princess ceased production after six years on sale. Its successor, the Ambassador, was a facelifted version of the original 1975 car, but the most significant change was the transition from saloon to hatchback body style.
British Leyland's Triumph division was undergoing a major transformation for 1982. The outdated, though sporty, Dolomite and TR7 ranges would cease production after a collective lifespan of 17 years. The marque would include one single model: the Acclaim, which was the result of a recent venture with Honda. The Acclaim was powered by a lively 1.3 L overhead camshaft petrol engine capable of an impressive 97 mph. With Japanese input, the Acclaim was hoped to mark a significant rise in quality control standards for British Leyland. Production of the new car, which debuted in 1980 in Japan as the Honda Ballade, would take place at the Cowley plant in Oxford.
Renault introduced a new front-wheel drive range of saloons – the R9 – at the end of 1981, giving it a direct up-to-date competitor for the new-for-1981 Ford Escort. The initial engine range included 1.1 and 1.4 petrol engines; larger engined models would follow at a later date. The 1.4 version was available with a five-speed manual gearbox, a rarity in comparable cars of the time. The American market also received a version of the 9, known as the Renault Alliance, as Renault attempted to gain more popularity at the far side of the Atlantic through its partnership with the American Motors Corporation. The Renault 9 made an impact in Europe, as the continent's motoring journalists voted it Car of the Year for 1981.
Volkswagen brought its range up to date for the 1980s by launching new versions of its Polo mini-car and Passat family car. Both cars were a huge success during their original 1970s incarnations. The Passat continued as a hatchback and estate, while the Polo hatchback was joined by a saloon model which (in Europe) no longer wore the Derby nameplate which was seen on the booted version of the original Polo.
The ultra-modern Audi Quattro was imported to British shores a year after going on sale in its homeland. With a 2.1 L turbo engine and four-wheel drive, this coupé was capable of around 140 mph and enjoyed a successful motorsport career.
Mercedes-Benz further strengthened its position as one of the world's most desirable brands of car by introducing an all-new version of the acclaim S-Class luxury saloon. With very high levels of equipment, refinement, quality and comfort, the new car also benefited from a range of impressively powerful engines. The range-topper of the new S-Class range was the 560SEL, which was powered by a 6.9 L V8 petrol engine and had a top speed of approximately 150 mph, making it one of the fastest four-door cars made up to this time.
After almost a decade on sale in Europe, Fiat finally exported the popular X1/9 sports car to America.
Following the split from Fiat, SEAT rebranded its entire Fiat-based model range, with the Panda becoming the Marbella, the Ritmo becoming the Ronda and the 127 becoming the Fura.
The first generation Accord was a huge worldwide sales success for Honda, showing that it could build a credible rival for the Ford Cortina. The Americans were particularly impressed by the Accord, though its sales success was not quite matched in Europe. The new model had vastly improved fuel economy, despite using the same 1.8 L petrol engine that powered the original Accord.
The Toyota Celica entered its third incarnation with a much more modern bodystyle which is primarily aimed at the American market. Power came from swift performing 1.6 L, 1.8 L, 2.0 L and 2.4 L petrol engines which maintained the Toyota traditions of reliability and refinement. There was also a three-door liftback version which had a practical edge over the traditional two-door model. For those who wanted high performance, European buyers finally got the Celica Supra, which came with a 2.8 L engine and was fast enough to be considered a serious competitor for the likes of the Porsche 924.