The Fiero was conceived as a small, two-seat sports car with all new suspension and a V6 engine. While
General Motors's management were opposed to investing in a second two-seater sports car that might compete with the Corvette, young Pontiac engineers in 1978 were able to sell the Fiero concept to the corporation as a fuel-efficient four-cylinder "commuter car" that just happened to have two seats, rather than a muscle car. When the engineers brought back a running
prototype in less than six months, it was given the green light for production. They perceived the
oil crisis as a market opportunity for a fuel-efficient sporty commuter car. The Fiero was redesigned to use a fuel efficient version of GM's
four-cylinder Iron Duke engine capable of in the city and on the highway with the economy-ratio transmission option. The fuel economy was considered as impressive for a 2.5 L engine of the period, but the three-speed
automatic reduced highway mileage to only . With respect to fuel economy, the Fiero appealed to a market niche distinct from the Corvette's. Pontiac assigned oversight of the Fiero project to Hulki Aldikacti, a Turkish born executive with over twenty years of experience. The word
Fiero means "very proud", "fierce", "bold", "haughty" "cruel", "severe" in Italian, and "wild", "fierce", or "ferocious" in Spanish. Alternative names considered for the car were Sprint (which had previously been used on
a GMC and would later end up being used for
a Chevrolet instead), P3000, Pegasus, Fiamma, Sunfire (a name which would later be applied to
another Pontiac), and Firebird XP. Aldikacti's unorthodox design methods and personal manner made him unpopular to most of GM's bureaucracy. He was told by counterparts at other GM divisions three times that the Fiero project had been cancelled by corporate management. However, the project was kept alive by high-ranked defenders, chiefly William Hoglund, who took over Pontiac in 1980, when the brand's popularity was heavily diluted and its cars could be described as outdated. In 1983 Hoglund told his top three dozen staffers that Pontiac would rebuild itself with cars that were exciting and different — terms that described Aldikacti's "commuter car". In order to meet Hoglund's marketing teams goal of 100,000 cars a year, Hoglund negotiated a deal to reopen a plant once shut down in the heart of
Pontiac, Michigan. He and his staff wanted to prove that cooperation between management and labor could be solved without the use of robots on the assembly line, which GM's top executives wanted. Likewise, Hoglund allowed the hourly paid workers to choose the two-seater's name — hence the name "Fiero." A mid-engine layout was chosen to reduce both aerodynamic drag and vehicle weight; to improve fuel efficiency, and to offer handling, traction, and braking benefits. The performance potential of the mid-engine layout was not realized when the Fiero debuted. As cost-saving measures, the tires, brakes, and suspension components were carried over from other GM platforms such as the
X and
T platforms. As a result, the handling abilities of the Fiero were merely on par with other contemporary sporty coupes. The Fiero received positive reviews for its handling (Motor Trend 1984), as well as negative reviews for not meeting expectations of higher performance from its mid-engine configuration. Despite the criticism, the Fiero sold well and although Pontiac operated three shifts at the factory during 1984, they could not keep up with initial demand. The sharing of
suspension and other components with other GM cars meant the rear suspension and
powertrain was virtually identical to that of the
Phoenix; the Fiero even included rear
tie rod ends attached to a "steering knuckle", although these were hard-mounted to the engine cradle and only used for maintaining the rear tire alignment. As the oil crisis eased by 1985, demand developed for more engine power and better performance. Pontiac responded by introducing the GT model which included upgraded suspension tuning, wider tires, and a
V6 engine having more than the base four-cylinder. In 1988, changes included a completely redesigned suspension (and parts of the space frame) along with two-piece brake calipers and upgraded brake rotors — the latter which had been conceived with the initial design. The available I4 and V6 engines benefited from evolutionary improvements, but the planned availability of
turbochargers and newer
DOHC engines did not happen before production stopped. In spite of the design finally realizing its potential, sales had declined and GM ended production. ==Production years==