In 1986 the Debonair adopted a front-wheel drive format, in order to accommodate an increase in interior space. It also came with Mitsubishi's first V6 engines, the 6G71 2.0L and the 6G72 3.0L. A supercharged version of the smaller engine was added to the line-up in 1987, using the world's first needle roller rocker arm assembly. This generation, and its successor, were also sold as the Hyundai Grandeur.
The third model debuted in 1992, longer and wider than its predecessors. The wider range of available engines was now topped by a 260PS (256hp/191kW) 6G74 3.5L DOHC V6, and as Mitsubishi's domestic flagship incorporated much of the company's technology, including four-wheel steering, four-wheel anti-lock braking system, electronically controlled suspension, and INVECS automatic transmission with traction control.
It was discontinued in 1999, and directly replaced by the Proudia. However, Mitsubishi also developed its first V8 engine for the new Dignity luxury car around this time, and it was this latter model which took position as the domestic flagship of the company.