Redesigned in 1965, the Impala set an all-time industry annual sales record of more than 1 million units in the United States. All new full-size Chevrolets eschewed the "X" frame for a full-width perimeter frame, a new body that featured curved, frameless side glass (for pillarless models), sharper angled windshield with newly reshaped vent windows, and redesigned full-coil suspension.

1966 Impala SS Convertible
In 1965, Chevrolet introduced a new luxury package for the Impala four-door hardtop, called "Caprice" and coded as RPO Z18. Caprices received tufted upholstery, wood grained accents on the dashboard and specialty pulls on the insides of the doors. This "halo" model also featured the "spinner" wheel covers from the Impala SS, with the "SS" logo centers replaced by a Chevrolet "bowtie" emblem. The Super Sport's blackout rear trim strip below the triple taillights was also used, with the "Impala SS" emblem replaced by a large "Caprice by Chevrolet" badge. The Impala block lettering on each front fender was replaced with "Caprice" script. The Caprice package was reintroduced as the Chevrolet Caprice Custom in 1966, taking the top position in the full-size Chevrolet lineup.

Engine choices included the inline six-cylinder as well as the small-block and big-block V8s. A new three-range Turbo Hydra-Matic automatic transmission was optional for 396 cu in (6.5 L) V8. The old 409 cu in (6.7 L) "W" engine was discontinued early in the 1965 model year, so early-production 1965s got the 409, as well as 1/10 of 1% had the 396 CID big-block. Other later-built cars had the 396 cu in (6.5 L) as the big-block option. Two-speed Powerglide, as well as 3- and 4-speed manual transmissions were available. As with previous years, Impalas featured more chrome trim inside and out, with pleated tufted upholstery and door panels. The Impala would be the #2-selling convertible in the US in 1966, with 38,000 sold; it was beaten by the Mustang by almost 2:1.[22] 1966 saw a pair of enlarged big-block V8s featuring 427 cu in (7.0 L). The RPO L36 was rated at 385 hp (287 kW), the L72 at 425 hp (317 kW). The L72 was only available with a manual transmission.

The 1967 model was redesigned with enhanced Coke bottle styling that featured Corvette-inspired front and rear fender bulges. The curves were the most pronounced with the 1967–1968 models. In keeping with federal regulations, safety features were built into Impalas during the 1967 and 1968 model years, including a fully collapsible energy-absorbing steering column, side marker lights, and shoulder belts for closed models. The L72 engine was not available in 1967, but a L36 Turbo-Jet V8 was optional.

1968 Impala Sport Coupe
The 1968 model was facelifted with a new front end. The new rear bumper housed triple "horseshoe" shaped taillights. 1968 also saw a new Impala model, the Custom Coupe. This two-door hardtop featured the same formal roofline as the Caprice Coupe. It was successful and would be continued right through 1976. The L72 "427 Turbo-Jet" engine was once again returned to the option list, a solid-lifter V8 rated at 425 hp (317 kW). It would continue to be available for both 1968 and 1969, replaced by the Turbo-Jet 454 for 1970.

The 1969 Impala and other full-sized Chevrolets got new slab-sided bodies with a small "upsweep" at the rear quarter window, giving them a more formal appearance. It retained the 119-inch wheelbase from previous models. New front bumpers that wrapped around the grille and horizontal taillights were in the rear bumper. The hardtop Sport Coupe got a new notchback roofline, replacing the "fastback" C-pillar from 1967 to 1968. Ventless front windows were used on all models. Chevrolet had a rudimentary "power vent" system featuring vents in the instrument panel. The ignition switch was moved from the instrument panel to the steering column, and when the key was removed, the steering wheel and shift lever were locked.

The 1969 model year Impala production topped Caprice production by 611,000 units. Impala station wagons were renamed Kingswood, a name which would continue through 1972. The similar 1970 Impala got a minor facelift featuring a more conventional under the grille bumper replacing the wrap-around unit used in 1969 along with new triple vertical taillights in the rear bumper. Canadian buyers got the choice of a lower priced companion to the Impala Sport Coupe, the Bel Air Sport Coupe, which used the same body but featured Bel Air trim.

Exports
Right hand drive cars were manufactured in Canada for export to countries such as Australia, New Zealand, the United Kingdom, etc., until 1969. They used a version of the 1965 Impala dash panel — without provision for a radio and installed in a dashboard moulding made of fibreglass, not metal — until 1969. Radios (centrally mounted) and heaters were locally sourced and wipers parked in the center of the windscreen. Australian models were assembled in Australia from kits, as this lessened tax on the cars. The Australian cars had locally sourced amber flashing rear indicators replacing the clear reversing lenses, as red indicators were illegal. For New Zealand assembly, the bodies were supplied from Canada already welded, painted and trimmed.

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