Driven by Markku Alén, Attilio Bettega, and Walter Röhrl, the car won Lancia the manufacturers' world championship in the 1983 season.
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 1983 season was considerably more successful for the 037: Lancia took the 1983 World Rally Championship Constructors' title with Germany's Walter Röhrl and Finland's Markku Alén its principal drivers, despite serious competition from the 4WD Audi Quattro.
For the 1984 Constructors' title defence, Lancia introduced an Evolution 2 version of the 037 with improved engine power output, but this was not enough to stem the tide of 4WD competition, losing to Audi in both 1984 championships, and again to the 4WD Peugeot 205 T16 in its final works season in 1985.
[2][3] Similar to the concept of a silhouette racer; while the 037 was loosely based on the Lancia Montecarlo (also known as Scorpion in the US and Canadian markets) road car, they shared only the center section with all body panels and mechanical parts being significantly different.
However the 037 was designated and sold as a distinct model, not as a Montecarlo, and both the street and race versions of it were built using the same construction methods, so it does not qualify as an actual silhouette racer.
Notes: Homologation requirements for the World Rally Championship's Group B mandated Lancia to produce at minimum 200 verifiable road-going examples in order to allow the 037 to compete.