Back in the 1980s, America had an obsession with innovation and experimentation, but how couldn’t it? Various innovative technologies emerged during that period such as, disposable cameras, compact discs, and personal computers. Naturally, automakers didn’t want to get left behind, so they started experimenting as well. And they came up with smart suspension, four-wheel steering, and car phones. In this context, Pontiac wanted to introduce its own innovations, so it released the mid-engine Fiero. Meant to impress with its affordable pricing, sporty look and weird engineering innovations, it sadly turned out to be a calamity for the brand.

In fairness, the Pontiac Fiero gets a lot of slack from consumers and industry experts, but there are big differences among models. For instance, the 1984 model equipped with a lackluster and weak Iron Duke four-cylinder engine was a disaster. The followup, the 1985 model, was already a slight improvement from its predecessor thanks to the V6 engine. However, the 1988 was a totally different story. Already by 1988, Pontiac learned their lesson, and pushed by market demands it delivered a model that wasn’t bad at all.

By the time Pontiac killed the Fiero because of its bad reputation and poor sales, the car built a loyal fan base, and it impressed even some naysayers. However, the majority couldn’t overlook the fact that the Fiero was something like a GM parts bin. Despite the shortcomings, the 1988 model, at least, was not as bad.

Related: Check Out This Abandoned 1984 Pontiac Fiero 2M4 Found Rusting Away In A Junkyard

Didn’t Catch Fire Like Previous Models

Pontiac Fiero GT - Front
Mecum Auctions

The knowledge that the Fiero's engine might catch fire was a piece of information that discouraged purchasers. There were unending mechanical concerns, and some owners could have minimized them, but this was too important to ignore. Back in 1989, the Los Angeles Times even highlighted that federal engineers were investigating the issue. The article claimed that the National Highway Traffic Safety Administration reportedly received 148 complaints about General Motors Corp. vehicles, including reports of six injuries.

Supposedly, oil was leaking and coming in contact with engine components. The oil “would catch on fire when it contacted the exhaust manifold or hot exhaust components,” the agency’s engineers mentioned in summarizing the alleged malfunction. And according to the analysis, 147,571 Fieros from the 1985 and 1986 model years got impacted. Later on, GM issued a mass recall for 126,000 units of the 1984-model after similar reports of fires reached consumers. While the 1988 model was an improved version of the Fiero, customers mistrusted the automaker and sales collapsed. The harm already happened, and the business could not maintain its good name.

The 1988 Pontiac Fiero Is A Good Investment

Pontiac Fiero GT - Front Quarter
Via Mecum Auctions

Whereas the preceding models had several problems, the 1988 model year appeared almost as a brand-new car thanks to its upgrades. For instance, Pontiac derived the suspension for the previous models from the Chevrolet Chevette. However, in 1988, the Fiero came equipped with new front and rear suspension featuring vented disc brakes at all four corners. Naturally, this improved the handling.

Because of controversies, buyers did not trust the Fiero in the 1980s, although contemporary auto enthusiasts are much more appreciative of the car. Modern consumers know that there are big differences between the inaugural model and the 1988-year model, so in recent years, prices have gone up. In fact, at the height of the pandemic in 2020, GAA Classic Cars Auction sold the last 1988 Fiero GT that rolled out of the assembly line for a staggering $90,000, according to Hagerty. One year later, Bring a Trailer auctioned a 1988 Fiero GT with 417 miles on the odometer for $32,750. And according to Slash Gear, in 2020, another Fiero with only 108 miles on board hit $30,000 at an auction. Slash Gear points out that in 2016 a 1987 Fiero GT didn’t even reach $5,000 at the auction, so either the 1988 model over-performs or the world has turned more nostalgic during the pandemic.

Related: Here's Why The Pontiac Fiero Was Discontinued

Consumers Misjudged The 1988 Pontiac Fiero Because Of The Honda CRX

Via automobilemag.com

The Pontiac Fiero suffered from a misperception among buyers, besides the damage brought on by the reputation crisis. Customers frequently contrasted the Fiero with its competitors. Consider the Honda CRX as an example. Customers were so fixated on the two-seat hatchback they failed to see that the Fiero was also a respectable car. To be fair, the CRX with its light body of only 1,819 lbs achieved great fuel economy. And despite the 76 horsepower, it reached the same top speed as the Fiero. But the Honda CRX had an ace up its sleeve — an impeccable reputation. Conversely, the Fiero had the fires and a poor rep.