Good fuel economy and an affordable pricetag made the 1988 Dodge Lancer hatchback an attractive option for first-time drivers or those looking for a roomy family car. Not known particularly for speed or sports performance, in 1988 Dodge added the Lancer Shelby to its lineup.

Not to be confused with the Shelby Lancer that came out the previous year (but perhaps intentionally to confuse prospective buyers), the Lancer Shelby was a more powerful, sports-tuned version of the 1988 Lancer. It featured the 2.2-liter I4, but with the intercooled Turbo II rather than the Turbo I. This monster hit 175-hp and was only paired with the 5-speed manual transmission. If you wanted the 3-speed auto tran option, you had to get the 2.2 Turbo I. The 1988 Lancer Shelby had a sports suspension, stronger sway bars, and a lower ride height. On the outside, it featured two rear spoilers, one on the deck and one on top of the hatch roof. Standard interior features included power-adjustable leather seats, cruise control, power mirrors, windows, and locks, and air conditioning. A sunroof was optional. Only 279 were produced in 1988, making it a rare find.

In addition to the Lancer Shelby, the 1988 Lancer came in base and ES models with three other engine choices. Base engine was a 2.2-liter, 97-hp I4, and there was a 146-hp turbo version of the 2.2 also offered. The third choice was a 2.5-liter, 100-hp I4.