Born in 1979 to succeed the 504, the Peugeot 505 - the last RWD car produced by the marque – receives a turbocharged engine in 1983 and thus comes almost to the level of sportiness of the German salons with their well-established reputation.

At Peugeot, the preference for the more powerful models was to use the V6 PRV engine, but a new direction is taken with the 505 (with assistance from Porsche!), for which the Chrysler-Simca 4 cylinder 2.2 litre (2,156 cc) cast-block engine is retained, surmounted by an aluminium cylinder head with overhead camshaft, and with Bosch L-Jetronic injection and fed by a Garrett T3 turbocharger, without intercooler, producing 150 bhp. The sporting identity of the car is again confirmed by special suspension, ventilated front disc brakes, aluminium 15-inch wheels and a 25% limited-slip differential. A 180 bhp version with intercooler will be marketed from March 1984.

A new version of the 505 Turbo, the so-called “Phase 2”, will be produced from July 1985 again with more power, now reaching 180 bhp.

The Peugeot 505 Turbo has a great sporting career on circuits, French Supertouring Championship (1984-1986) and a single make trophy, the “505 Turbo Trophy” organised by Peugeot Talbot Sport (1985-1987, with a 200 bhp kit and even one to 230 bhp).