In January 1985, the fifth generation Familia/323 featured many updates.
It was available as a hatchback or sedan only for the first year, and wagon and cabriolet models were added in November 1985 and March 1986 respectively.
In January 1987 a personal coupé version with its own bodywork, the Étude, was added.
In February 1987 the Familia range underwent a light facelift that included replacing the old E engines with the more modern B series.
In some markets, such as Indonesia, the B engine continued to be installed after the facelift.

The 1985 Familia spawned a Ford Laser twin sold in the Asia-Pacific.
The Laser sedan and wagon were nearly identical to the Familia but with a Ford grille.
By contrast the Laser hatchback model, which was sold in the U.S. as the Mercury Tracer used completely different panels from the Familia's.

This generation of the Familia/323 was also available in a version with a turbocharged DOHC engine, with either front- or four-wheel drive, producing 140 PS (103 kW).
The 4WD version (sold in either a light-weight GT or fully optioned GT-X grade) introduced in October 1985, saw some success in rally's Group A category.
A limited production Japanese-only homologation special, the 4WD GT-Ae, appeared May 1988 and offered an additional ten horsepower and viscous rear limited slip differential (similar to the later BG Familia).
There was also a 1.7-liter diesel version available with 58 PS (43 kW) at 4300 rpm and 112 N⋅m (83 lb⋅ft) at 2800 rpm.
It is an indirect injection engine, naturally aspirated.

This generation was sold through the 1989 model year in the United States.
The wagon (BW) continued alongside the succeeding generation in most markets until 1994/95, and was later updated with a new grille and lights.

The model remained in production in South Africa, as an entry-level model until 2003.
It was also sold there as the "Midge", the "Sting", and as the "Ford Tonic".
A locally designed pick-up based on the Familia front end, called the Rustler was also produced, and sold as the "Ford Bantam".
From 1991 to 1994 Samcor also produced and sold the 323 with the 2.0 L 16-valve DOHC FE engine from the Mazda 626 and badged it "200i".
Along with the 2.0 L 16-valve DOHC engine there were upgrades to the suspension and braking system.
Still, the 1.6-liter GT-Ae homologation car was more powerful.

This South African built model was also sold in Australia between 1989 and 1991 with minor changes, the most noticeable one being the front indicators having a clear color rather than the normal amber.
These models were labeled BF as opposed to the next generation's BG.

A factory-built convertible body was introduced in March 1986 in both Mazda 323 and Ford Laser (323 panels from firewall back) versions, initially running the 1.5-liter SOHC E5T engine but later switching to the 1.6-liter DOHC B6D.
Engines (export models):
1985–1987 – 1.1 L (1,100 cc) E1, 2 barrel, 8-valve, 55 PS (40 kW; 54 hp) / 59 lb⋅ft (80 N⋅m)
1985–1987 – 1.3 L (1,296 cc) E3, 2 barrel, 8-valve, 68 PS (50 kW; 67 hp) / 71 lb⋅ft (96 N⋅m) - 60 PS (44 kW; 59 hp) in some markets, 65 PS in Switzerland
1987–1989 – 1.3 L (1,323 cc) B3, 2 barrel, 8-valve, 66 PS (49 kW; 65 hp) / 74 lb⋅ft (100 N⋅m)
1985–1987 – 1.5 L (1,490 cc) E5, 2 barrel or EGi, 8-valve, 85 PS (63 kW)/12.3 kg·m (121 N·m) (JDM carb)
1985–1987 – 1.5 L (1,490 cc) E5T, turbo EGi, 8-valve, 115 PS (85 kW)/16.5 kg·m (162 N·m) (JDM only)
1987–1989 – 1.5 L (1,498 cc) B5, 2 barrel, 12-valve, 73 PS (54 kW; 72 hp) / 81 lb⋅ft (110 N⋅m)
1985–1989 – 1.6 L (1,597 cc) B6, 8-valve, 85 PS (63 kW; 84 hp) / 90 lb⋅ft (122 N⋅m)
1985–1989 – 1.6 L (1,597 cc) B6T, turbo, 16-valve, 140 PS (103 kW; 138 hp) / 138 lb⋅ft (187 N⋅m)
1986–1989 – 1.6 L (1,597 cc) B6D, 16-valve, 110 PS (81 kW; 108 hp) / 98 lb⋅ft (133 N⋅m) (JDM only)
1985–1989 – 1.7 L (1,720 cc) PN, Diesel, 8-valve, 57 PS (42 kW; 56 hp) / 107 lb⋅ft (145 N⋅m) (JDM only)
1988–1991 – 2.0 L (2,000 cc) FE-SOHC, EFi, 8-valve, 118 PS (87 kW; 116 hp) / 131 lb⋅ft (178 N⋅m) (South Africa only)
1991–1994 – 2.0 L (2,000 cc) FE-DOHC, EFi, 16-valve, 146 PS (107 kW; 144
In January 1985, the fifth generation Familia/323 featured many updates. It was available as a hatchback or sedan only for the first year, and wagon and cabriolet models were added in November 1985 and March 1986 respectively. In January 1987 a personal coupé version with its own bodywork, the Étude, was added. In February 1987 the Familia range underwent a light facelift that included replacing the old E engines with the more modern B series. In some markets, such as Indonesia, the B engine continued to be installed after the facelift.
The 1985 Familia spawned a Ford Laser twin sold in the Asia-Pacific. The Laser sedan and wagon were nearly identical to the Familia but with a Ford grille. By contrast the Laser hatchback model, which was sold in the U.S. as the Mercury Tracer used completely different panels from the Familia's.
This generation of the Familia/323 was also available in a version with a turbocharged DOHC engine, with either front- or four-wheel drive, producing 140 PS (103 kW). The 4WD version (sold in either a light-weight GT or fully optioned GT-X grade) introduced in October 1985, saw some success in rally's Group A category. A limited production Japanese-only homologation special, the 4WD GT-Ae, appeared May 1988 and offered an additional ten horsepower and viscous rear limited slip differential (similar to the later BG Familia). There was also a 1.7-liter diesel version available with 58 PS (43 kW) at 4300 rpm and 112 N⋅m (83 lb⋅ft) at 2800 rpm. It is an indirect injection engine, naturally aspirated.
This generation was sold through the 1989 model year in the United States. The wagon (BW) continued alongside the succeeding generation in most markets until 1994/95, and was later updated with a new grille and lights.
The model remained in production in South Africa, as an entry-level model until 2003. It was also sold there as the "Midge", the "Sting", and as the "Ford Tonic". A locally designed pick-up based on the Familia front end, called the Rustler was also produced, and sold as the "Ford Bantam". From 1991 to 1994 Samcor also produced and sold the 323 with the 2.0 L 16-valve DOHC FE engine from the Mazda 626 and badged it "200i". Along with the 2.0 L 16-valve DOHC engine there were upgrades to the suspension and braking system. Still, the 1.6-liter GT-Ae homologation car was more powerful.
This South African built model was also sold in Australia between 1989 and 1991 with minor changes, the most noticeable one being the front indicators having a clear color rather than the normal amber. These models were labeled BF as opposed to the next generation's BG.
A factory-built convertible body was introduced in March 1986 in both Mazda 323 and Ford Laser (323 panels from firewall back) versions, initially running the 1.5-liter SOHC E5T engine but later switching to the 1.6-liter DOHC B6D.
Engines (export models):
1985–1987 – 1.1 L (1,100 cc) E1, 2 barrel, 8-valve, 55 PS (40 kW; 54 hp) / 59 lb⋅ft (80 N⋅m)
1985–1987 – 1.3 L (1,296 cc) E3, 2 barrel, 8-valve, 68 PS (50 kW; 67 hp) / 71 lb⋅ft (96 N⋅m) - 60 PS (44 kW; 59 hp) in some markets, 65 PS in Switzerland
1987–1989 – 1.3 L (1,323 cc) B3, 2 barrel, 8-valve, 66 PS (49 kW; 65 hp) / 74 lb⋅ft (100 N⋅m)
1985–1987 – 1.5 L (1,490 cc) E5, 2 barrel or EGi, 8-valve, 85 PS (63 kW)/12.3 kg·m (121 N·m) (JDM carb)
1985–1987 – 1.5 L (1,490 cc) E5T, turbo EGi, 8-valve, 115 PS (85 kW)/16.5 kg·m (162 N·m) (JDM only)
1987–1989 – 1.5 L (1,498 cc) B5, 2 barrel, 12-valve, 73 PS (54 kW; 72 hp) / 81 lb⋅ft (110 N⋅m)
1985–1989 – 1.6 L (1,597 cc) B6, 8-valve, 85 PS (63 kW; 84 hp) / 90 lb⋅ft (122 N⋅m)
1985–1989 – 1.6 L (1,597 cc) B6T, turbo, 16-valve, 140 PS (103 kW; 138 hp) / 138 lb⋅ft (187 N⋅m)
1986–1989 – 1.6 L (1,597 cc) B6D, 16-valve, 110 PS (81 kW; 108 hp) / 98 lb⋅ft (133 N⋅m) (JDM only)
1985–1989 – 1.7 L (1,720 cc) PN, Diesel, 8-valve, 57 PS (42 kW; 56 hp) / 107 lb⋅ft (145 N⋅m) (JDM only)
1988–1991 – 2.0 L (2,000 cc) FE-SOHC, EFi, 8-valve, 118 PS (87 kW; 116 hp) / 131 lb⋅ft (178 N⋅m) (South Africa only)
1991–1994 – 2.0 L (2,000 cc) FE-DOHC, EFi, 16-valve, 146 PS (107 kW; 144
Mazda Familia