Codenamed “Erika”, the third generation Escort was launched in September 1980. The car, Ford Europe's second front-wheel drive model, was originally meant to be called the “Ford Erika” but ended up retaining the Escort name.

To compete with Volkswagen's Golf GTI, a hot hatch version of the Escort Mark III was developed – the XR3. Initially this featured a tuned version of the 1.6-litre CVH engine fitted with a twin-choke Weber carburettor, uprated suspension and numerous cosmetic alterations....