Lancia returns to rallying with its new Ypsilon

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Lancia’s rebirth continues with the announcement on Monday that the brand is headed back to rally racing.

There was a time when the Italian brand, today part of the Stellantis fold, was dominant in rallying, including in the sport’s infamous Group B class. This was on the back of icons such as the Delta S4 and the 037.

For its return, Lancia will use its redesigned Ypsilon subcompact hatchback as the basis of its modern rally car. Known as the Ypsilon Rally 4 HF, the initial design was revealed as part of Monday’s announcement.

As the name suggests, the car is being developed for the FIA’s Rally 4 class (formerly R2), a lesser class designed for cars with two-wheel drive. It’s where you typically see up-and-coming drivers looking to build experience.

Lancia hasn’t said when the Ypsilon Rally 4 HF will be ready to hit the gravel, but the company has confirmed the car will be powered by a turbocharged 1.2-liter inline-3 rated at 212 hp. The engine will be mated to a 5-speed manual transmission and spin the front wheels only. A mechanical limited-slip differential will also be part of the package.

2025 Lancia Ypsilon HF

2025 Lancia Ypsilon HF

2025 Lancia Ypsilon HF

2025 Lancia Ypsilon HF

2025 Lancia Ypsilon HF

The Ypsilon Rally 4 HF will also feature the famous stampeding elephant logo of the Lancia HF Squadra Corse motorsports department that dates back to 1963. The logo will also be used on Lancia’s future road-going performance lineup, the first of which will be an Ypsilon HF due in 2025. The Ypsilon HF will feature an electric powertrain rated at 240 hp, or enough for 0-62 mph acceleration in 5.8 seconds.

Lancia is working on two more vehicles, a Gamma due in 2026 and a Delta due in 2028. Unlike the Ypsilon, which offers a choice between gas and electric powertrains, the future Lancias will be strictly EVs. Lancia has confirmed these new models will also feature HF performance variants.

Don’t look for any of the new Lancias to reach the U.S., as the brand is fully focused on the European market.

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