In 1980 Lancia began the development of the 037 to comply with the then new FIA Group B regulations that allowed cars to race with relatively few homologation models being built. As the project name was number 037, this eventually became the name by which the car was known. Abarth, now a part of the Lancia-Fiat family, did most of the design work, even incorporating styling cues from some of its famous race cars of the 1950s and 1960s such as a double bubble roof line. The car was developed in collaboration between Pininfarina, Abarth, Dallara and the project manager, engineer Sergio Limone. Prior to its first participation in the 1982 World Rally Championship season, 200 road-going models were built to comply with Group B regulations.