The Challenger name was revived in late 1977 for the 1978 model year for a version of the early Mitsubishi Galant Lambda coupe. It was known overseas as the Mitsubishi Sapporo/Scorpion and sold through Dodge dealers as a captive import, originally as the "Dodge Colt Challenger". It was identical except in color and minor trim to the Plymouth Sapporo with the Dodge version emphasizing sportiness, with bright colors and tape stripes, while the Plymouth emphasized luxury, with more subdued trim. The cars were slightly restyled in 1981 with revised headlights and other minor cosmetic changes. Both cars were sold until 1983, when they were replaced by the Conquest, Laser and Daytona.
The car retained the frameless hardtop styling of the old Challenger, but had smaller engines (inline-fours instead of the six and eight-cylinder engines of the old Challenger) and was a long way off in performance from its namesake. Nevertheless, it acquired a reputation as a reasonably brisk performer in its class, not least because of its available 2.6 L "Hemi" engine with 105 hp (78 kW). Four-cylinder engines of this size had not usually been built due to inherent vibration, but Mitsubishi pioneered the use of balance shafts to help dampen this effect, and the Challenger was one of the first vehicles to bring this technology to the American market; it has since been licensed to many other manufacturers.