This is the story of the first mid-engine sports car of America. Back in 1983, long before C8 happened, General Motors had manufactured a mid-engine sports car called Fiero. It was launched in 1984 as a production model and was built until 1988. Pontiac Fiero was specifically designed as a sports car by George Milidrag and Hulki Aldikacti. The idea behind the Pontiac Fiero was to build a sporty two-seater car with a V6 engine and an all-new suspension. Of course, the senior management at GM was against the investment. They did not want another small two-seater sports car from the house that could easily compete with Corvette.

Quite understandable, you do not want to run against your own horse in a race. However, Pontiac engineers were headstrong about the concept of a 2-seat sports car that was exclusive to them. Hence, they sold Fiero which was originally conceived as a small ‘sports’ car, to the corporation as a small and fuel-efficient ‘commuter’ car (that happened to have two seats). This was 1978 and undoubtedly, buyers were crazy about fuel-efficient compact cars due to the oil crisis. Soon enough, the team got permission. $700M was allocated and that is how Pontiac Fiero came into existence.

Even though Fiero survived for just five years, it changed the auto industry in more ways than one. It was not only the first two-seater Pontiac since the 1938 coupe, but also the first-ever mid-engine car from any American manufacturer. Fiero was loaded with new technology and tons of innovative features. For instance, composite panels embedded in its design were radical. Stereo speakers integrated into the driver and passenger headrests or hidden headlamps were all unique and unheard of at that time.

Fiero was also designated as the official Pace Car for the Indianapolis 500 of 1984. Despite all these accomplishments, Fiero enjoyed a very brief life span. Unfortunately, 1988 was its last production year. If the radical features and wonderful outlook of Fiero have got you thinking about its unusual life span, we have got you covered. Scroll through to know about the tragic yet interesting story of this mid-engined American sports car.

Updated August 2022: The Pontiac Fiero was an awesome American creation that met an unlucky end. We have updated this article on the dramatic and sad life run story of the American sports car that changed the way people perceived performance.

Launched in 1983 by General Motors, the Pontiac Fiero was revolutionary, but life-threatening problems caused the demise of this game-changer.

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Catching Fire Was One Of Pontiac Fiero's Major Flaws

Pontiac Fiero mid-engine bay view
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If Pontiac Fiero were a person, this story would hit straight the Hollywood theaters. Although these cars were small, economical, made in America, and handled well, their bad reputation ruined their fate. The Pontiac Fiero is infamously referred to as one of the most explosive cars in the world. This performance car was an instant success right from its launch. However, once problems started appearing, there was no going back.

The Fiero was prone to oil leaks and overheating. There are various reasons stated about the source of the fire issue. But the most concrete of them off was given by a GM dealership of the time that the oil pan size was impractically reduced which resulted in less oil for the engine to stay cool; hence the fires.

Pontiac Fiero exploded side view
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Another reason that was doing rounds was that of incorrect oil pan quantity measurement mentioned in the user manual, which caused people to fill up less oil for the engine. Sometimes, leaking oil dripped onto the hot exhaust and would start a fire, but this was not the only cause of the fire.

During a GM ground test drive, a faulty radiator hose led to fire too. New issues kept crawling in like a can of worms, and a hate wave started against the Fiero intensified by an equally bad press. Poor reliability and performance, expensive maintenance, and an awfully heavy and underpowered engine did not help the case either.

A Recall Nightmare Plagued The Pontiac Fiero

Pontiac Fiero rear view
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Anyway, the number of reported fires was so huge that the cars had to be recalled. One Fiero exploded out of every 508 cars sold. However, the Director of GM explained in his recall notification letter to NHTSA that improper owner maintenance and service procedures were the only causes of engine fires and there wasn’t any possible design flaw on their part (of course).

The last thing a driver would want is their car to catch fire. In the case of Fiero, some drivers became victims. Rest got their lesson and stayed away. And so, General Motors put out a recall order for 244,000 Pontiac Fieros; that every Fiero ever made!

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Annual Sales Slashed Dramatically Soon After

Pontiac Fiero looks striking in blue
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Following the unfortunate events, needless to say, the sales went south before they knew it. Not just that, poor Fiero has since been given the nickname of Money Loser. Reportedly, General Motors has suffered a massive loss of about $2,000 for each Fiero they built, to the credit of their young prodigy.

Thanks to multiple recalls, explosive engine compartment fires, bad press, and consumer sentiment, numbers kept falling, and in the end, unfortunately (for Fiero) and fortunately (for the unfortunate buyers and GM), Fiero was discontinued in 1988 to never come back (hopefully).

1988 Pontiac Fiero pop-up headlamps front view
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This Pontiac looked to have promised a dream, but we think it bid adieu like a nightmare. Having said that, it’s a far cry from disaster. Pontiac Fiero has a cult following of enthusiasts. All of its model years have become collectibles, especially the 1988 model.

In December 2020, the last Fiero that had rolled off the assembly line on August 16, 1988, sold for $90,000. Pontiac Fiero could have been a great car but its slapdash execution and luckless tenure left it misunderstood and disappointed.

Source: General Motors