It featured a larger bodyshell, and a wider range of engine options, including a GTD turbodiesel (in Euro markets, later using the 1.6 "umwelt" (ECO) diesel engine), a DOHC 1781 cc (1.8) 16-valve version of the straight-four GTI (as well as the tried and tested 1781cc (1.8) 8v GTI), the supercharged 8v "G60" with front- and four-wheel drive options, and a racing homologated variant of this, the "Rallye Golf".

Ford had switched to front-wheel drive hatchback format for its MK3 Escort in 1980, soon after General Motors had adapted that concept for its latest Opel Kadett (Vauxhall Astra in Britain).

However, the likes of Fiat, Renault and Volvo had all entered the small family hatchback market by the end of the 1970s.

However, the Golf was overshadowed in the 1984 European Car of the Year contest, finishing third but being heavily outscored by the victorious Fiat Uno and runner-up Peugeot 205, which were similar in size to Volkswagen's smaller Polo.

Notable changes to the looks of the Golf MK2 included the removal of quarterlight windows in the front doors, and the introduction of larger grille slats with the August 1987 facelift.

The most notable was the introduction of so-called "Big Bumpers", which were introduced in the European market with an August 1989 facelift.

James Fuller, head of the Volkswagen brand in North America, concurred in using the Golf name to stress the car's Teutonic character.

The GTI body kit became available on a non-injection Golf and was sold as the "Driver" trim level in Europe.

Trim levels included base, C, CL and GL and initially a range-topping Carat model (until 1986), later a GT (in 1987) version was also on offer.

In the course of the years, a host of "limited edition" models appeared on various markets, distinguished by cosmetic changes and/or an enriched features list.

Like late Mk1 GTIs, it featured a naturally aspirated Bosch K-Jetronic fuel injected 1781 cc inline-four engine developing 112 PS (82 kW; 110 hp).

In 1986 (1987 for North America) a Golf GTI 16V was introduced; here the 1.8 litre engine output was 139 PS (137 hp; 102 kW) at 6,100 rpm (or 129 PS (95 kW) for the catalyst version) and 168 N⋅m (124 lb⋅ft) at 4,600 rpm of torque,[6] the model was marked by discreet red-and-black "16V" badges front and rear.

The rear seat was moved forward 30 mm (1.2 in), and the cargo floor was raised, making the luggage compartment 25 percent smaller than in a regular Golf.

Distinguishable by its box-flared wheel arches and rectangular projector headlamps, this model featured Syncro four-wheel drive, a cable shifted transmission and a G-supercharger 1763 cc, marginally less than the standard 1781 cc to enable the car to enter in the sub 3-litre class for Group A rallying.

Five thousand cars were built in Volkswagen's Brussels, Belgium, plant, priced at about DM 50,000 each (or roughly twice as much as a base Golf GTI).

Fuller died in December 1988 while flying home from Germany aboard Pan Am Flight 103, when a bomb planted by Libyan terrorists exploded over Lockerbie, Scotland; this had a detrimental effect on the Rallye Golf's chances of importation to North America.

Based on the Rallye Golf, a very limited edition Golf Mk2 variant exists, combining all of the high-line options (such as leather interior with heated and height adjustable front seats, 4 electric windows, electric mirrors, ABS, power steering and sunroof) available at the time.

There was also a version called Golf Country (7,735 cars built), co-manufactured by Steyr-Daimler-Puch in Austria, designed for medium off-road driving.

It had more suspension travel, Syncro four-wheel drive, improved ground clearance of 21 cm (8.3 in), bullbars at front and rear (generally over a single headlight grille), a skid plate for protecting the engine area, sub-frame to protect the rear Syncro differential and propshaft and a spare wheel mounted externally on a swing-away triangular frame on the back.

[citation needed] The Golf Country's powertrain was also used in the Biagini Passo, a compact convertible crossover built in Italy.

[15] In 1984 Volkswagen, in cooperation with RWE, released the second generation 'Golf citySTROMer, an electric version of the Mk2 Golf.

The Mk2 citySTROMer had a range of approximately 50 km (31 mi) and used 16 gel-electrolyte batteries mounted under the cargo area and rear seats.

When sales in North America failed to live up to expectations and with increasing productions costs, the Westmoreland Assembly Plant was closed in July 1988.

All Golfs gained the flush "aerolamps" in 1987 after a design freshening to move it more upscale in the wake of the introduction of the Brazilian-built Fox (Voyage in Brazil) in North America.

In 1989 a GTI version was introduced with a 105 hp (78 kW) "Digifant" fuel injected variant of the 1.8-liter engine with no catalytic converter.

As of 2012, over 20 years after the Mk2 Golf's demise, it is still a very common sight on British roads and is being recognized by many as a growing classic.