20 most iconic new cars from 1998

Take a trip back to 1998

1998 was a classic year for iconic new car designs. Arguably the most memorable of all was the Audi TT, an instant classic from the moment the covers were pulled off. While Audi no longer makes the TT – production stopped in 2023 after 25 years – it remains a landmark.

Here, we take a look back at the launch of the TT and the other memorable new car designs revealed in 1998.

1998 Audi TT

Going from concept car to production reality virtually unaltered, the first-generation Audi TT still looks modern today. It was a revelation when launched in 1998, with its sleek lines and minimalist interior wowing style-conscious customers.

Early cars suffered with high-speed stability issues, which led to a rear spoiler being fitted. This did little to dampen interest, however, as the TT became a big seller in the UK.

A turbocharged 1.8-litre engine and Quattro four-wheel drive ensured the TT had all-weather performance. Although it’s never been the most engaging sports car to drive, style and panache never go out of fashion.

1998 Porsche 996 Carrera

Porsche had used an air-cooled flat-six in the 911 from the beginning, making the switch to water-cooled engines very controversial. However, the need to meet emissions regulations, and a demand for improved refinement, forced the company’s hand.

At launch in 1998, the new 996-generation 911 shared many components with the original Porsche Boxster. It also bore more than a passing resemblance to the cheaper roadster, sharing the same ‘fried egg’ headlights.

Some purists are still undecided about the 996, but it marked an important step in bringing the 911 into the modern era.

1998 Maserati 3200 GT

A rival to the revamped 911, the Maserati 3200 GT also marked the start of a new chapter for the Italian brand. It was the first all-new model launched under the ownership of Ferrari, Maserati’s long-time rival.

Powered by a twin-turbocharged 3.2-litre V8 producing 370hp, the 3200 GT could reach a top speed of 174mph. There was room for adults in the two rear seats, and decent build quality meant the 3200 GT could be driven every day.

The 3200 GT was also the world’s first car with LED tail lights. However, these were dropped for the facelifted version in order to meet U.S. legal requirements.

1998 BMW Z3 M Coupe

The BMW Z3 was a popular roadster, although a team of in-house engineers believed a fixed-roof version was needed. Developed as an extracurricular activity, the result was the unusual shooting brake styling of the Z3 Coupe.

European buyers were offered a milder version, but only the high-performance Z3 M Coupe was sold in the UK. Initially powered by a 321hp 3.2-litre straight-six, the Z3 M gained a reputation for lively handling in wet weather.

A slow-selling model when new, its rarity has led to the Z3 M Coupe becoming a collector’s item.

1998 Honda Accord Type R

Following the success of the Integra Type R, Honda was keen to bring more performance models to market. Enter the Accord Type R, which transformed a dependable four-door saloon into a high-revving hero.

A 2.2-litre four-cylinder engine produced its peak 209hp at a stratospheric 7,200rpm, with a limited-slip differential helping to transfer power through the front wheels. A five-speed manual gearbox was standard, with firmer suspension and weight-saving measures also part of the package.

It all left the Accord Type R feeling like a touring car racer for the road, and helped cement the appeal of the famous red R badge.

1998 Subaru Impreza 22B STI

The battle between Subaru and Mitsubishi in the World Rally Championship reached its peak in the late 1990s, leading to a host of high-performance road cars. For those on the Subaru side of the fence, the 22B was probably peak Impreza.

Built to celebrate Subaru’s three successive WRC titles, the 22B wore the widened bodywork of the rally car. An upgraded 2.2-litre turbocharged boxer engine produced 280hp, with the ability to accelerate from 0-60mph in 5.0 seconds.

Production was limited to 400 cars, with only 16 officially imported to the UK under the Single Vehicle Approval Scheme.

1998 Mitsubishi Lancer Evo V

By 1998, Mitsubishi was locked into making annual updates to its Lancer Evolution series, intended to keep the performance saloon at the top of its game.

With the Evo V, the Lancer gained wider bodywork and an adjustable rear spoiler. Its alloy wheels grew in size to 17 inches, helping to accommodate powerful Brembo brakes.

Power from the 2.0-litre turbocharged four-cylinder engine remained at 280hp, but maximum torque improved to 275lb ft. With four-wheel drive as standard, the Evo V could reach 60mph in less than 5.0 seconds.

1998 Volkswagen New Beetle

It might seem hard to believe now, but the level of excitement around the Volkswagen New Beetle reached fever pitch in 1998. Although right-hand drive-production did not begin until 1999, the demand for the retro-styled hatchback saw left-hand-drive versions imported.

Sharing a platform with the contemporary Golf, along with a host of other Volkswagen Group models, the Beetle was fairly ordinary beneath the skin. At least the option of a 150hp 1.8-litre turbocharged engine offered a decent turn of speed.

This mattered little to those who longed for a modern interpretation of an air-cooled Beetle, and the interior felt bespoke compared to a Golf – including a flower vase on the dashboard.

1998 Volkswagen Lupo

Proving that Volkswagen could do quality on a smaller scale, the Lupo made its debut in 1998. However, UK customers had to wait, again, until 1999 to grab a slice of this diminutive city car.

It shared much with the Seat Arosa, but the Lupo boasted a higher-quality interior and funkier styling. Blue backlighting was used for the dashboard, with large round gauges giving a sporty appearance.

The Lupo range peaked with the GTI version, launched in 2000, which was seen by enthusiasts as a successor to the original Golf GTI.

1998 Smart City Coupe

The late 1990s were all about city cars, with none smaller than the Smart City Coupe. Measuring just 2.5 metres in length, the original Smart used a three-cylinder rear-mounted engine, along with an automated manual gearbox.

As with the New Beetle, such was the enthusiasm for the City Coupe that left-hand-drive examples began appearing in the UK soon after launch. Official imports of LHD cars started in 2001, with right-driven versions finally arriving later that year.

Charming but flawed, the City Coupe stands out as a true piece of 90s nostalgia.

1998 Fiat Multipla

Where do we even start with the Fiat Multipla? At its core was a wonderfully practical MPV, with a clever six-seat design. Two rows of three seats made it shorter than a regular family hatchback, with plenty of space for passengers and luggage inside.

The looks were, and still are, impossible to ignore. At least the large windows offered a good view out, and it was difficult to lose a Multipla in a car park. A plastic-fantastic dashboard added to the sense of madness.

Forever controversial, the Fiat Multipla did at least prove that MPVs don’t need to be boring.

1998 Peugeot 206

The Peugeot 205 was a hugely popular hatchback during the 1980s, so its 206 successor had sizable shoes to fill. Although it never achieved the legendary status of its predecessor, the British-built 206 was a strong-seller.

Handsome looks, a refined ride and affordable prices all contributed to the 206’s appeal. The performance GTI model never came close to the iconic 205 GTI, though, even when a more powerful 175hp version was released.

The folding hard-top 206 CC, which emulated the Mercedes-Benz SLK, was perhaps this Peugeot’s most notable moment.

1998 Ford Focus

Unlike the Peugeot 206, in replacing the Mk5 Ford Escort, the new Focus had a very low bar. The final version of its predecessor had been unremarkable at best, whereas the Focus was radical inside and out.

Ford’s angular ‘New Edge’ styling ensured it looked far more modern than its rivals, matched by an interior that was both funky and practical. However, what made the Focus a true revelation was how it drove.

Class-leading ride and handling ensured the first-generation Ford Focus was an enthusiasts’ choice, helping push it to the top of the sales charts. Performance versions such as the ST170 and RS only added to its appeal.

1998 Jaguar S-Type

The 1998 British Motor Show at the NEC saw two important saloons revealed, starting with the Jaguar S-Type. Although not officially on sale until January 1999, the importance of the S-Type means we have included it here.

Designed to compete with the BMW 5 Series, the Jaguar combined rear-wheel drive with retro-inspired styling. Its looks were divisive, with some liking the classic appearance and others finding it a backwards step.

The name was also a throwback to the S-Type of the 1960s, but the platform was a modern one shared with the Lincoln LS and Ford Thunderbird. A supercharged S-Type R was a notable high-point, taking the fight to the BMW M5 and Mercedes-Benz E55 AMG.

1998 Rover 75

Arguably a better interpretation of retro British styling than the S-Type, the Rover 75 was the other big debut at the NEC. As the only car to be fully developed under BMW ownership, the 75 was a better car than its reputation suggests.

Early versions were particularly well made, with an interior that was both spacious and attractive. A wide choice of engines included powerful petrol V6s, along with BMW-sourced diesels.

All of this made for an impressive executive saloon, and one that now enjoys a loyal following.

1998 Lexus IS200

We’ve pushed the boundary again here, as the Lexus IS200 was not actually launched until January 1999. However, the Toyota Altezza, on which it is based, did begin production in 1998.

The tail lights of the IS200 were one of the most memorable parts of this compact rear-wheel-drive saloon. Versions of clear ‘Lexus lights’ ended up adorning modified cars throughout the early 2000s, ensuring the IS200 had a lasting legacy.

Elsewhere, the Lexus was a commendable rival for the default German execs, offering a refined driving experience and a high-quality interior.

1998 Alfa Romeo 166

Alfa Romeo was undergoing a renaissance in the late 1990s, buoyed by the success of the new 156. The follow-up was the larger 166, designed to compete with the BMW 5 Series and Volvo S80.

The 166 certainly had the look of a winner, with styling by Walter de Silva. Its interior also looked good, with plenty of leather and a high standard spec. Models with V6 engines were particularly good to drive – and sounded great, too.

UK buyers hardly flocked to the 166 in droves, but that was no fault of the car itself.

1998 Mercedes-Benz S-Class

The ‘W220’ Mercedes-Benz S-Class had a tough act to follow in 1998. One of the earliest models released during the ill-fated DaimlerChrysler merger, the new S-Class was intended to be a technological tour de force.

New features included air suspension, ventilated seats, keyless entry, curtain airbags and voice recognition. The introduction of radar-assisted cruise control was a world-first, too. Engine options stretched all the way to the S 65 AMG, with its twin-turbocharged 6.0-litre V12.

The S-Class was a force to be reckoned with when new – and is a second-hand bargain today.

1998 Rolls-Royce Silver Seraph

The sale of Rolls-Royce in 1998 was almost farcical, with the Volkswagen Group acquiring the Crewe factory and Spirit of Ecstasy mascot, but BMW gaining the Rolls-Royce name. This left the two German companies locked in an awkward stalemate.

While this was being resolved, the Silver Seraph made its debut at the 1998 Geneva Motor Show. It was powered by a BMW-supplied 5.4-litre V12 engine, with adaptive suspension and a column-mounted five-speed automatic gearbox.

Connolly leather and walnut trim ensured the interior felt as luxurious as Rolls-Royce buyers would expect. Production only lasted until 2002, with BMW releasing the all-new Phantom the following year.

1998 Bentley Arnage

The other side of the Rolls-Royce and Bentley saga was the launch of the Arnage in 1998. Developed alongside the Silver Seraph, early versions had a BMW 4.4-litre V8 engine, albeit with twin turbochargers to boost power to 349hp.

Bentley later resorted to using a modernised version of its 6.75-litre twin-turbo V8. The top-performing Arnage T offered more than 500hp, making this Bentley into a luxurious hot rod.

Compared to the short-lived Silver Seraph, the Arnage soldiered on all the way until 2009.