Audi launched the third generation 80 B3 in September 1986. Much like the Audi 100 C3 that was introduced in 1982, the car was much more aerodynamic than its predecessor, the 80 B2, with a drag coefficient as low as 0.29. The flush fitting glass and doorhandle were available from launch. The shape much rounder than the predecessor, with an almost hatch like appearance with the very short boot.

The B3 80 could be ordered with the revolutionary procon-ten safety system, shortly after its introduction in the Audi 100.

Available in front wheel drive and four wheel drive (4WD) quattro models with a range of four cylinder and five cylinder petrol engines. Diesel and Turbo Diesel engines were available in front wheel drive models only.

Transmission options were four and five speed manuals or three speed automatic, quattros were all manual.

The Audi 4000 was the North American market model covering both the 80 and the Audi 90. By 1988 this was also known sold as the Audi 80.

By 1990 the 1.8 had grown to 2.0 litres, with no real changes in outright power. And the normally aspirated Diesel had grown to 1.9 litres. The car gained a little weight too slowly over the years. The lightest car being only 1030 kg rising to 1170 kg with 4WD. The US market car was a whopping 1340 kg, but it had a 5 cylinder engine after all.

Rather strangely for Germany there was a 1.9 variant of the petrol model. And for Portugal and Greece a 100 hp fuel injected 1.6E. Also some Austrian 1.6 variants were produced.