When rallying really took off in the ’80s and ’90s it spawned a new type of performance car. These cars were built for tarmac and mud stages, so their road-going cousins were naturally well-suited to real world conditions. What’s more, they often had four doors, plenty of legroom and a boot (trunk) in the back. And the best bit? Pretty much anyone could buy one and, depending on how deep your pockets were, become Blomqvist, McRae, or Mäkinen.
In 1986, driving a Talbot Sunbeam, McRae entered the Scottish Rally Championship and soon made a name for himself with his speed and exciting style of driving. His driving style drew many comparisons to Finnish ex-World Rally Champion Ari Vatanen, whom McRae had always idolised. In 1988 he performed a giant-killing act when he took the Scottish Rally Championship series crown in a humble Vauxhall Nova. Craving more power, his next car was a Ford Sierra XR 4x4.
The causes and characteristics of rallies vary, but most financial theorists agree that economic cycles and investor sentiment both play a role in the creation and momentum of rallies. In general, information about a strong or strengthening economy, indicated by high employment, high disposable income, low inflation and high business profits usually ushers in a rally. The existence of several new trading highs for well-known companies also indicates a rally is occurring. It is important to note that government involvement affects rallies: Changing the federal funds rate or tax rates indirectly encourages economic expansion or contraction.
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Rising investor confidence also indicates a rally, and it is perhaps more powerful than any economic indicator because when investors believe something is going to happen (a rally, for example), they tend to take action (purchasing shares in order to profit from expected price increases) that actually turn expectations into reality. Although it is an objective concept, investor sentiment shows through in mathematical measurements such as the put/call ratio, the advance/decline line, IPO activity, and the amount of outstanding margin debt.
In many rallies, including those of the World Rally Championship (WRC), drivers are allowed to run on the stages of the course before competition and create their own pacenotes. This process is called reconnaissance or recce. During reconnaissance, the co-driver writes down shorthand notes (the pacenotes) on how to best drive the stage. Usually the drivers call out the turns and road conditions for the co-drivers to write down. These pacenotes are read aloud through an internal intercom system during the actual race, allowing the driver to anticipate the upcoming terrain and thus take the course as fast as possible.
The French started their own Rallye des Alpes Françaises in 1932, which continued after World War II as the Rallye International des Alpes, the name often shortened to Coupe des Alpes. Other important rallies started between the wars included Britain's RAC Rally (1932) and Belgium's Liège-Rome-Liège or just Liège, officially called "Le Marathon de la Route" (1931), two events of radically different character; the former a gentle tour between cities from various start points, "rallying" at a seaside resort with a series of manoeuvrability and car control tests; the latter a thinly disguised road race over some of Europe's toughest mountain roads.
Rallies usually present a multitude of moneymaking opportunities for investors because prices are generally rising across the board. But rallies don’t last forever, and they don’t always give advance notice of their arrival, so the investor must know when to buy and when to sell to maximize his or her profits. This means the investor must attempt to "time the market" or gauge when a rally has begun and when it is ending.
In 1980, a German car maker, Audi, at that time not noted for their interest in rallying, introduced a rather large and heavy coupé version of their family saloon, installed a turbocharged 2.1 litre five-cylinder engine, and fitted it with four-wheel drive. Thus the Audi Quattro was born. International regulations had prohibited four-wheel drive; but FISA accepted that this was a genuine production car, and changed the rules. The Quattro quickly became the car to beat on snow, ice or gravel; and in 1983 took Hannu Mikkola to the World Rally Championship title. Other manufacturers had no production four-wheel drive car on which to base their response, so FISA was persuaded to change the rules, and open the Championship to cars in Group B. This allowed cars to be much further removed from production models, and so was created a generation of rallying supercars, of which the most radical and impressive were the Peugeot 205 T16, Renault 5 Turbo and the Lancia Delta S4, with flimsy fibreglass bodies roughly the shape of the standard car tacked onto lightweight spaceframe chassis, four-wheel drive, and power outputs reportedly as high as 600 hp (450 kW). Further Group B cars were developed by Ford (the RS200), British Leyland (the Metro 6R4) and many others, but these were less successful.
To limit power, all forced induction cars were fitted with a 34 mm diameter air restrictor before the turbocharger inlet, limiting the air flow to about 10 cubic meters per minute. The restriction was intended to limit power output to 300 hp although some WRC engines were believed to produce around 330–340 hp. Engine development did not focus on peak power output but towards producing a very wide powerband (or power curve). Typically, power output in excess of 300 hp was available from 3000 rpm to the 7500 rpm maximum, with a peak of 330–340 hp at around 5500 rpm. At 2000 rpm (the engine idle speed in "stage" mode) power output was slightly above 200 hp.
In 1979, a young Frenchman, Thierry Sabine, founded an institution when he organised the first "rallye-raid" from Paris to Dakar, in Senegal, the event now called the Dakar Rally. From amateur beginnings it quickly became a massive commercial circus catering for cars, motorcycles and trucks, and spawned other similar events. Since 2008, it has been held in South America.
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In an attempt to cut costs, since 2006 new regulations required mechanical front and rear differentials, while the central differential remained active. Active suspension and water injections were also prohibited. Cars entered by a manufacturer had to be equipped with the same engine for two rallies; further limitations were imposed on the changing of some parts, including suspension, steering, turbochargers and gearboxes.
This particular era was not to last. On the 1986 Rallye de Portugal, four spectators were killed; then in May, on the Tour de Corse, Henri Toivonen went over the edge of a mountain road and was incinerated in the fireball that followed. FISA immediately changed the rules again: rallying after 1987 would be in Group A cars, closer to the production model. One notably successful car during this period was the Lancia Delta Integrale, dominating world rallying during 1987, 1988, 1989, 1990, 1991 and 1992 – winning six consecutive world rally championships, a feat yet unbeaten.