Ford's initial Group B project, the rear-wheel-drive turbocharged Escort RS 1700T, was cancelled in 1983 after problematic development. Rather than abandon the category, Ford commissioned an entirely new purpose-built car with all-wheel-drive — mandatory to compete with the turbocharged four-wheel-drive machines from Peugeot and Audi. The body was designed by Ghia and manufactured by Reliant at Shenstone. The complex drivetrain routed power from the mid-mounted engine forward to the gearbox at the front, then back to the rear axle. Ford standardised several components with the Sierra — windscreens, rear lights, and modified door panels — to meet homologation requirements.
The longitudinally mounted 1,803 cc Cosworth BDT four-cylinder turbocharged engine produced 250 hp in road trim and 350–450 hp in competition configuration, with upgrade kits capable of exceeding 300 hp on road cars. The engine drove through a five-speed AP twin-plate paddle-clutch gearbox. Independent double-wishbone suspension with twin coil springs and telescopic dampers appeared at both axles. Road-trim testing recorded 0–60 mph in 3.8 seconds and a standing quarter-mile in 11.4 seconds at 115 mph.
The RS200 entered the 1986 WRC season but suffered from a notorious low-RPM turbo lag and an unfavourable power-to-weight ratio against rival machines. Kalle Grundel achieved the car's best Group B result, a third place at the 1986 Rally of Sweden. Tragedy struck at the 1986 Rally de Portugal when an RS200 crashed into spectators, killing three people. Shortly afterwards, Swiss Formula One driver Marc Surer crashed an RS200 during the Hessen-Rallye, fatally injuring co-driver Michel Wyder. These accidents were central to the FIA's decision to abolish Group B after 1986, ending the RS200's WRC career after a single season.
Ford had prepared an Evolution variant with a larger 2.1-litre BDT-E engine developed by Brian Hart, producing approximately 580 hp at 8,000 rpm in typical specification and up to 815 hp in extreme tune. The Group B ban forced the E2 into retirement from WRC, but more than a dozen competed in FIA European Rallycross Championships from August 1986 through October 1992. Norwegian Martin Schanche claimed the 1991 European rallycross title in an RS200 E2 producing over 650 bhp.
FIA Group B homologation required a minimum of 200 road-legal vehicles; Ford contracted Reliant to build exactly 200 at Shenstone, priced at £49,995 in 1985. FIA regulations for the Evolution variant required a further 20 units, which Ford produced despite Group B's abolition; approximately 24 of the original 200 were later converted to Evolution specification. A Canadian entrepreneur, Murray H. de Weerdt, marketed an unofficial "S Version" comprising 20 cars with wider seats, improved cooling, and enhanced power. A 2017 Bonhams auction established a record sale price of $550,000, and another Evolution model sold for £486,000 in November 2023. In June 2024, Ford and Boreham Motorworks announced an RS200 "Remaster" programme.
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