The Intrepid's design can be traced to 1986, when designer Kevin Verduyn completed the initial exterior design of a new aerodynamic concept sedan called Navajo. The design never passed the clay model stage.
It was also at this time that the Chrysler Corporation purchased bankrupt Italian sports car manufacturer Lamborghini. The Navajo's exterior design was reworked and became the Lamborghini Portofino, released as a concept at the 1987 Frankfurt Auto Show. The Portofino was heralded as a design triumph, setting in motion Chrysler's decision to produce a production sedan with the Portofino's revolutionary design, called "cab-forward".
The cab forward design was characterized by the long, low slung windshield, and relatively short overhangs. The wheels were effectively pushed to the corners of the car, creating a much larger passenger cabin than the contemporaries of the time.
Design of the chassis began in the late 1980s, after Chrysler had bought another automaker: American Motors Corporation (AMC) in 1987. During this time, Chrysler began designing the replacement for the then-new Dodge Dynasty, which was a mid-size car. Initially it bore resemblance to the Dynasty, and this design was scrapped entirely after François Castaing, formerly AMC's Vice President of product engineering and development, became Chrysler's Vice President of vehicle engineering in 1988. The new design, under Castaing's leadership, began with the Eagle Premier.
The Premier's longitudinal engine mounting layout was inherited, as was the front suspension geometry, and parts of the braking system. The chassis itself became a flexible architecture capable of supporting front or rear-wheel drive (designated "LH" and "LX" respectively).
The chassis design was continually refined throughout the following years, as it underpinned more Chrysler prototypes: the 1989 Chrysler Millennium and 1990 Eagle Optima.
The transmission was inspired by the Premier's Audi and ZF automatics. Borrowing heavily from Chrysler's A604 (41TE) "Ultradrive" transversely-mounted automatic, it became the A606 (also known as 42LE). This "Ultradive" transmission however was not without critics as The New York Times reported on January 25, 1991 that Consumers Union would publish in the February 1991 issue of the magazine Consumer Reports a warning for consumers to NOT purchase a vehicle with this "Ultradrive" transmission citing poor reliability and safety hazards.