The 1989 season saw much improvement. The all-new, Cosworth DFR-powered Osella FA1M was a big step ahead, and ultra-sticky qualifying tyres from Pirelli brought some success, at least in the qualifying sessions (most notably in the Japanese Grand Prix, where Larini qualified 10th). The fine qualifying performance brought no results in the races; the Osella cars almost never saw the finish line due to several technical failures. The most tragic race was the Canadian Grand Prix in which Larini was third before the FA1M's electrics failed due to water ingress. Piercarlo Ghinzani re-joined the team for 1989 with limited success, often failing to qualify. He announced his retirement at the season ending Australian Grand Prix. While Larini failed to start the very wet race when his electrics were water-logged on the grid, Ghinzani's race and career came to a violent end when a high-speed collision with the Lotus of Nelson Piquet left Ghinzani with an injured ankle.