In 1980 Ferrari introduced a two-litre version of the 308, 208 GTB and 208 GTS. They were mainly for the domestic Italian market, where new cars with engines above 2 litres were subjected to a much higher value added tax, 38% instead of the standard 18%.[12]The 208 was also listed in Portugal and New Zealand. The 208 GTB/GTS replaced the 208 GT4 2+2. It is often regarded as the slowest Ferrari ever made but proved faster than the 208 GT4 Bertone in a 1980 test by American magazine Motor Trend.

The engine was de-bored to 66.8 mm (giving it an undersquare design) for a total displacement of 1,990.64 cc (121 cu in),[13] resulting in one of the smallest V8 engines ever produced. Fed through four Weber 34 DCNF carburetors, the V8 produced 155 hp (114 kW) at 6800 rpm. 160 208 GTS and 140 208 GTB cars were produced in 1980 and 1981.