The LC1 featured a chassis built by Dallara with an open cockpit, while the engine would be a 1425 cc straight-4 Lancia unit with a single turbocharger, as had been used in the previous Montecarlos.
However, the car's life was short due to rule changes enacted prior to the LC1's competition debut in 1982.
To Lancia's advantage, Group 6 cars were not required to meet the fuel economy standards that Group C cars used, allowing the team to run flat-out throughout a race and compete for overall victories.
With the LC1 already restricted the project was quickly abandoned in 1983, with Lancia building an all-new car to Group C regulations known as the LC2.
The LC1s still saw some competition in 1983, as Italian squad Sivama Motor modified a pair of LC1s to include a closed cockpit and meet Group C regulations.