For 1987, Chrysler Corporation introduced two new compact cars, the Dodge Shadow and the Plymouth Sundance (which turned in similar sales figures), intended to replace the Dodge Charger - Dodge Omni and Plymouth Turismo - Plymouth Horizon, respectively. In addition, the Shadow also replaced the AMC-based Renault Alliance sedan because of Chrysler acquiring AMC from Renault in 1987, officially withdrawing Renault from the United States and Canada. Many Renault and AMC models were poured to the new Eagle brand in 1988. They were built in Sterling Heights, Michigan and Toluca, Mexico. In Mexico, they were marketed as Chrysler Shadows, although they were rebadged Plymouth Sundances. The first car rolled off the assembly line on August 25, 1986. Both 2-door and 4-door models were built using a variant of the K-car platform, known as the P-body, which was based on a combination of the Dodge Daytona's suspension with a shortened version of the Dodge Lancer's body.

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