Lancia Ypsilon Rally4

What Lancia needs to do to transform its rally return to the WRC

by · Autosport

The Italian brand will make a return to rallying next year in the Rally4 class

Lancia’s sporting director Eugenio Franzetti has explained why the brand is making its rally return in Rally4 and what is required to make a comeback to the World Rally Championship.

Lancia, the winner of a record 10 WRC constructors' titles (1974-1976, 1983, 1987-1992), is set to return to the rally stages next year with its all-new Ypsilon Rally4 car. Officially launched last month, the car will compete in the Italian Rally Championship and the newly created one-make Lancia Rally Trophy.  

The creation of the two-wheel drive Ypsilon Rally4 marks a return to rally for Lancia, 50 years after it won its first WRC title with the legendary Stratos in 1974. 

While Lancia’s emergence has created much fanfare, there had been speculation it would consider a Rally2 programme. It ultimately confirmed a Rally4 project that will see the brand contest the 2026 European Rally Championship.

Lancia has not ruled out a future WRC comeback and would consider forming a business plan once the WRC has announced its 2027 technical regulations. The FIA is expected to reveal its new regulations in December this year.

According to Franzetti, the stability of the Rally4 regulations was among the considerations that swayed the carmaker to make its return at the lower end of the rally pyramid.  

“What we need is to have the rules [2027 regulations], we need to know how the Rally2 of the future will be made and how the Rally1 of the future will be made. Once we understand this, in a few months we can also understand how much it costs to make them and how much. And then once we understand the rules, we can create a business plan,” Franzetti told Autosport's Italian sister edition. 

“Once the business plan has been created, we can put the costs on one side of the scale, and the value of visibility and the revenue on the other side, and understand if this scale is a scale that is positive. 

"We do motorsport and there is a return on investment. The return on investment is given on one hand by the technical and logistical costs of doing it, on the other hand it is substantially the value of visibility, which has a great significance. This visibility also brings you sponsors, partners and so on. All this clearly must be extremely positive. 

“Today the only certain rule is Rally4. We know how it is made, how much it costs and everything. That's why Lancia is back with a Rally4. The only certain thing we know is the regulation, it's clear, it's an extraordinary product, interesting from a racing point of view and from a commercial point of view.”

Lancia Ypsilon Rally4Photo by: Lancia

Lowering costs and the introduction of a cost cap are factors that could interest Lancia to rejoin the WRC. 

Franzetti also admitted to being an admirer of the Rally2 class, which Lancia’s owner the Stellantis Group is already visible in through the Citroen C3 Rally2 programme.   

“Let's try to create championships that cost a little less and that have a cost cap, after which, staying within it, you do what you want,” he added. 

“You have to make a championship with a finite number of millions, after which the engineers can unleash their imagination, knowing that motorsport is used as a promotional tool and therefore in any case everyone will bring what they know how to do also in terms and in the end it's a showcase. 

“Today we are all moving towards hybrid, electric, electrified. I imagine that everyone wants to demonstrate that they know how to do that thing there. But a cost cap would be enough and then leave space for the others.

"The Rally2 is a very interesting car because it's fast, it lets you win [national] championships, obviously the European championship, which allows you to go very fast also in WRC. 

“Today, with few Rally1s [in WRC], if you have a Rally2 you can also get into the top 10, even get close to the top five and you have crazy visibility. And then it's a commercial product, it's a product that you sell and whoever buys it is happy, it [the car] runs well, has an acceptable cost per kilometre and so on. The Rally2 was an extremely clever specification.”