That concept was based on the 'World Engine' concept. It wasn't just about WRC, but also Touring Cars, F2, F3 etc etc etc.
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Modern D-segment cars just wouldn't work. Remember how ridiculous the Audi 200 quattro looked as a rally car? I think the Subaru Legacy RS was about the limit of how big a rally car that still looks good can go.
I like the idea of bigger cars and the plan to add more variety but cars that big will just look ridiculous
Modern day equivalent :D
Someone put LSD in water during meetings of the FIA. Toyota is working on Yaris, Hyundai on the new i20 and now they want to put competing the Passat, DS5, Mondeo, i40 and Avensis?
They would be fun to watch; though maybe not with 1.6L.
Why not C-segment cars?
B-segment cars was a good bet because, are the ones who sell more and are more agile than those of segment C, that are much larger than they were before. If something must change in the WRC, I think it's the start order rule.