Introduced in Japan in December 1976, the Lambda was described not as a coupé but a "personal luxury car", as Mitsubishi already had the Lancer-based Celeste coupé in its line-up.

The car was marketed in North America as a captive import of the Dodge and Plymouth divisions of Chrysler; the cars differed only in minor details such as taillights, interior trim and available colors. Despite being mechanically identical, the Dodge was positioned to appeal to the performance market while the Plymouth was targeted at the luxury market.

Although the car received generally positive reviews, it was not overly successful in the United States. The discontinuance of the Sapporo after the 1983 model year helped make way for the products of the newly formed Chrysler-Mitsubishi joint-venture, Diamond Star Motors, as well as the entrance of Mitsubishi into the American market under its own name.

In Australia the car was imported from Japan as a flagship model to Chrysler Australia's highly successful Sigma range.