The third generation of the Toronado marked a serious downsizing for the once imposing personal luxury coupe offered by Oldsmobile.
During the "Malaise Era," the Toronado lost its powerful engines and its big size. But all that changed in 1978 when the 1979 model year appeared on the market. Starting with that year, the CAFE agreement came into force, and Oldsmobile had to shrink its elegant coupe. In addition, it was the first (and only) generation of this nameplate that featured a diesel engine.
The car's look was still imposing thanks to its flat front fascia fitted with four rectangular headlights and the chromed, pinned-out radiator. However, from its profile, the design team managed to create an elegant look for this vehicle with a slightly sloped-down, short deck.
Inside, the automaker installed a split bench at the front. Later on, Oldsmobile also added bucket seats to the options list. The tall dashboard featured a squared-looking instrument cluster in front of the driver and a center stalk where the audio and AC controls were placed. In the back, there was enough room for two adults on the comfortable bench.
The 1979 Toronado was the first to receive an independent rear suspension carried over from Cadillac. Thus, it was more comfortable and featured better road-holding than its predecessor. In addition, since the car was almost 1,000 lbs (450 kg) lighter than its predecessor, it offered improved fuel efficiency. Under the hood, Oldsmobile installed a choice of three engines: two with gasoline and one oil burner. Between 1979 and 1981, the transmission was a three-speed automatic and, starting with 1981, that was replaced by a four-speed auto.