The task of the Dedra was demanding, it had to continue the legacy of the Prisma, which relaunched the Lancia brand in the field of compact executive cars, and to expand its market share if possible.

Safety, both passive with a structure designed to minimize injury in an accident, and active, such as ABS and airbag, was also near the top of the Dedra's agenda.

This single floorpan thus formed the basis for three different cars with three different product themes: elegance for the Lancia Dedra (1989), convenience at a competitive price for the large-booted Fiat Tempra (1990), and sportsmanship for the Alfa Romeo 155 (1992).

It is a 2-litre four-cylinder fuel injected twin cam engine, fitted with contra-rotating balancing shafts, a Garrett T3 turbocharger and an associated inter-cooler to aid volumetric efficiency that boosts power output to 169 PS (167 hp; 124 kW) in the catalyzed version.

A front-wheel drive model with a turbocharged engine called the Dedra 2000 turbo was released simultaneously with the Integrale; it had slightly less power so as to not overwhelm the chassis.

A major facelift in 1993 did little to boost the car's sales success and the whole Lancia range including the Dedra was withdrawn from right hand drive markets a year later.

It was a four-seat coupé that was finished in bright orange and had a distinctive wedge shape that combined soft lines and aggressive details.