A prominent aspect of the Corvair's legacy derives from controversy surrounding its handling, articulated aggressively by Ralph Nader's Unsafe at Any Speed and tempered by a 1972 Texas A&M University safety commission report for the National Highway Traffic Safety Administration (NHTSA) which found that the 1960–1963 Corvair possessed no greater potential for loss of control in extreme situations than contemporary compacts.

[3] To better counter popular inexpensive subcompact competitors, notably the Beetle and Japanese imports such as the Datsun 510, GM replaced the Corvair with the more conventional Chevrolet Vega in 1970.

[6] By the late 1950s, the physical size of the entry-level models offered by the Big Three American domestic auto manufacturers (General Motors, Ford, and Chrysler) had grown considerably; effectively abandoning the market for the smaller vehicles that had been available in the past.

While the "Big Three" continued to introduce ever-larger cars during the 1950s, the new American Motors Corporation (AMC) focused its business strategy on smaller-sized and fuel-efficient automobiles, years before a real need for them existed.

[19] Shortly after its introduction, the Corvair faced competition from the Ford Falcon and Mercury Comet and was plagued by problems,[20]  although according to a 1960 Time report, "many were the minor bugs that often afflict a completely new car.

"[20] The 1960 model gasoline heater was cited as a problem, which itself could consume up to a quart of gas an hour[20] – with Chevrolet engineers quickly modifying the Corvair's carburetors to improve economy.

[21][22] Chevrolet positioned the under $2,000 car as an economy compact, and highlighted its rear-engine design, which offered a low silhouette, flat passenger compartment floor, and spacious interior.

The design was replaced in 1965 model year with a fully independent trailing arm rear suspension similar to that of the Corvette Sting Ray.

The 1960 Corvair Body Styles 569 and 769 four-door sedans[23] were conceived as economy cars offering few amenities to keep the price competitive, with the 500 Series selling for $2,038 ($20,990 in 2023 dollars [25]).

The Corvair's unique design included the "Quadri-Flex" independent suspension and "Unipack Power Team" of engine, transmission, and rear axle combined into a single unit.

[23] The success of the Monza model showed Chevrolet management that the compact Corvair was viewed as more of a specialty car than a competitor in the economy segment to the conventionally designed Ford Falcon or Chrysler's Valiant.

In spring of 1962, Chevrolet committed itself to the sporty image they had created for the Corvair by introducing a convertible version, then offering a high-performance 150 hp (112 kW) turbocharged "Spyder"[27] option for Monza coupes and convertibles, making the Corvair the second production automobile supplied with a turbocharger as a factory option, with the Oldsmobile F-85 Turbo Jetfire having been released earlier in 1962.

Optional equipment on all passenger cars (except wagons) included metallic brake linings and a heavy-duty suspension consisting of a front anti-roll bar, rear-axle limit straps, revised spring rates, and recalibrated shock absorbers.

These provided a major handling improvement by reducing the potentially violent camber change of the rear wheels when making sharp turns at high speeds.

The 1963 model year had the optional availability of a long 3.08 gear for improved fuel economy, but the Corvair otherwise remained largely carryover with minor trim and engineering changes.

The new rear suspension, the new softer spring rates in front, the bigger brakes, the addition of some more power, all these factors had us driving around like idiots—zooming around the handling loop dragging with each other, standing on the brakes—until we had to reluctantly turn the car over to some other impatient journalist.

A much better heater system, larger brakes borrowed from the Chevelle, a stronger differential ring gear, an alternator (replacing the generator), and significant chassis refinements were made.

A dual circuit master cylinder with warning light, nylon reinforced brake hoses, stronger steel (instead of aluminum) door hinges, "mushroomed" instrument panel knobs, and a vinyl-edged day/night mirror were all made standard equipment.

Additional safety features, including side marker lights, and shoulder belts for closed models, were fitted per the federal government's requirements.

GM saw advantages to the route adopted by Ford with the Mustang, a four-seat semi-coupe body on a standard compact (Falcon) chassis with a small-block V8 motor and four-on-the-floor offered as power options.

It was equipped with a 150 hp (112 kW; 152 PS) turbocharged engine, "full instrumentation", special emblems, and all the "Monza" trim items.

The design can allow rear tires to undergo large camber angle changes during fast cornering due to side g-forces causing "rebound" camber and decreasing the tread contact with the road surface, leading to a loss of rear wheel grip and oversteer – a dynamically unstable condition where a driver can lose control and spin.

A 1972 safety commission report conducted by Texas A&M University concluded that the 1960–1963 Corvair possessed no greater potential for loss of control than its contemporary competitors in extreme situations.

Former GM executive and automotive engineer John DeLorean asserted in his book On a Clear Day You Can See General Motors that Nader's criticisms were valid.

[43] In response to Nader's book, Mechanix Illustrated reviewer Tom McCahill tried to get a 1963 Corvair to flip, at one point sliding sideways into a street curb, but could not turn over the vehicle.

[44] The Corvair's reputation and legacy, as well as those of General Motors, were tarnished by accusations about its handling ability; the car was scrutinized in Ralph Nader's 1965 book Unsafe at Any Speed.

As the stock Corvair did not fit into any of the SCCA categories, Yenko modified four-carburetor Corsas into "sports cars" by removing the back seat and introducing various performance improvements.

The ability to produce automobiles on a small scale, along with Chevrolet's decision to terminate production of the Corvair, meant the end of Fitch's plan.

[54][55] A sports racing car – the Piranha – was developed around the same time, to demonstrate the use of a new plastic for the structural parts of the automobile – Cyclic ABS.

[59] Matthew Wetzel, owner of the Matt's Off Road Recovery YouTube channel, uses a highly modified Corvair Station Wagon nicknamed "The Morrvair" to recover stuck and disabled vehicles from the deserts of Southern Utah.