Rial Racing was established by German industrialist Günter Schmid, who had previous experience of Formula One with ATS Racing, to participate in the 1988 season. He contracted former Ferrari engineer Gustav Brunner to design a car based around the Cosworth DFZ V8 engine.[2]
The car, designated the ARC1, was similar in appearance in Brunner's Ferrari F1/87 and was known as 'the Blue Ferrari', though the ARC1 featured a different engine cover owing to different sized engine and fuel tank, as well as lower sidepods than the Ferrari due to not having to house turbochargers. Brunner gave the car a unique front suspension arrangement with its dampers positioned longitudinally at the height of the floor. Rial also developed its own gearbox for the ARC1. A total of three cars were built.
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