The racing took second place to politics as the sport threatened to tear itself apart. Only after one race (South Africa), had been stripped of championship status and another, (San Marino) contested by FISA aligned teams only, did FISA (the governing body) and FOCA (the teams) agree an uneasy compromise in the form of the Concorde Agreement.

New regulations stipulated that sliding skirts where to be banned and replaced by fixed skirts where to be a minimum of 60mm above the track at all times. It was not long before the designers circumvented this rule producing cars which lowered themselves onto the road surface once in motion and re-introducing true ground-effect.

When the racing finally took precedence, Nelson Piquet took the first of his three World Championships by just a single point from Carlos Reutemann. In fact the season was closely fought, boasting seven different winners from the fifteen-race calendar. Piquet took three wins and his closest title rivals were Reutemann, Jones, Lafitte and Prost. In fact, these five drivers were eventually only separated by seven points in the final standings. John Watson (Silverstone) and GillesVillenueve (Monaco and Spain) completed the winning roster.

Alan Jones went out at the top, retiring after winning the season's finale in Las Vegas. (The Aussie would return with less success in the future).