Today, July 11, 2024, Fiat celebrates its 125th anniversary. Founded on11 July 1899 at Palazzo Bricherasio in Turin, the Fabbrica Italiana Automobili Torino (Fiat) has played a crucial role in the evolution of the global automotive industry. Over the years, Fiat has become a pillar of Italian economic history of the twentieth century. The company, which dealt primarily with automobiles but also other industries, grew to become the most important group Italian private financial and industrialist of the 20th century. It was the first holding company in the country and, in the automotive sector, the largest manufacturer in Europe and the third in the world, after General Motors and Ford.
The golden age of Fiat ended at the end of the 1980s with the crisis of the Turin automotive industry. But Fiat managed to survive. Despite the numerous difficulties, the company was able to adapt and overcome the crises, despite having to give up "walking alone". Over the years it first merged with Chrysler to form FCA and then with PSA to create Stellantis.
Fiat: the foundation in 1899 and the first model
Fiat was born thanks to vision of a group of Turin investors, among which Giovanni Agnelli, who saw the potential of the automobile in an age dominated by horses and carts. The idea of producing cars on an industrial scale came from friends Emanuele Cacherano from Bricherasio e Cesare Goria Gatti, former founders of the Automobile Club of Italy. Given the success achieved by their artisanal car "Welleyes", they proposed to a group of acquaintances to acquire the skills of "Accomandita Ceirano & C." to transfer them to an industrial scale. In addition to the promoters, participated in the initiative the count Roberto Biscaretti di Ruffia, the marquis Alfonso Ferrero de Gubernatis Ventimiglia, the banker Michele Ceriana Mayneri, the lawyer Carlo Racca, the landowner Lodovico Scarfiotti, the stockbroker Luigi Damevino and the industrialist Michele Lanza. The day before the constitution, Lanza withdrew and part of his share was assumed by Giovanni Agnelli, involved at the last minute by Scarfiotti.
After various preliminary meetings held in Madame Burello's café and thanks to the financial support guaranteed by the "Discount and Thirst Bank" of Turin, the group met, the11 July 1899 at Palazzo Bricherasio to sign the birth certificate of Fia (Italian Automobile Factory)”, a name which was changed to Fiat during the year. At the beginning, the share capital was 800 thousand lire, for a total of 4 thousand shares. There presidency was entrusted to Ludovico Scarfiotti.
Il first model produced from the newborn company was the Fiat 3½ HP, eight examples built in 1899. This vehicle, which could reach a maximum speed of 35 km/h, represented an engineering masterpiece for its time. In the early XNUMXth century, Fiat focused on producing high-quality, luxury vehicles, rapidly expanding its product range to include commercial vehicles and agricultural machinery.
Fiat: from military vehicles to the birth of the 500 “Topolino”
During the First World War, Fiat played a crucial role in production of military vehicles. After the war, the company expanded rapidly, building new factories and increasing production. In 1916, the company began construction of its most famous production plant called Lingotto, at the time the largest and most modern in Europe, which came into operation in 1923.
In the 30s, Fiat launched models that would become icon of motoring, such as Fiat 500 “Topolino”, one of the first popular cars designed to be accessible to the masses, the 6-cylinder Fiat 1500 or the Fiat 508 Balilla. In the interwar period, Fiat engaged in a series of technological innovations, improving petrol engines and developing new materials. The autarchic policy desired by Mussolini prevented the company's expansion abroad, but favored its growth in the domestic market.
During the Second World War, however, Fiat was once again involved in war production. Factories were converted to build military vehicles, airplanes, and other war materials. The end of the conflict left Fiat with damaged plants and the need to rebuild. Shortly before the outbreak of the war, the new Mirafiori factory, where 24-hour work shifts were introduced.
Fiat: the 500 accompanies the Italian economic boom
After the war, Fiat was al center of Italian industrial reconstruction. The 500 model, relaunched as the "Nuova 500" in 1957, became a symbol of the Italian economic boom. Fiat expanded internationally, opening factories and forming alliances around the world. In the following years the company consolidated its global presence, becoming a clear expression of "Made in Italy". The Turin house began to export its vehicles around the world and to establish joint ventures in countries such as Spain, Russia and Brazil.
In 1965, Fiat announced a partnership with Ferrari for the development of sports engines, which led to the creation of the Dino brand. In 1969, Ferrari became part of the Fiat Group while maintaining its autonomy. In a joint statement, it was established that Fiat would acquire 50% of Ferrari to ensure the continuity and development of the company, which was maintained until Enzo Ferrari's death.
In 1966, the Fiat 124 for sale , (also launched in the Soviet Union under the name Lada) which became one of the best-selling models and was produced under license in several countries. In the seventies, however, they arrived Fiat 127 for sale e the iconic Fiat 126, still loved and coveted by collectors today. In 1978, Fiat Auto SpA reorganized its automotive divisions, integrating Fiat, Lancia, Autobianchi and Abarth, and creating Iveco for industrial vehicles.
The Fiat Panda arrives
In the 1980s, Fiat went through a phase of notable growth and innovation, consolidating itself as one of the world's leading automotive manufacturers. The company completely renewed its model range, introducing great innovations for each market segment. Sales of brands such as Fiat, Lancia and Autobianchi reached high levels, contributing to Fiat becoming the largest European automotive manufacturer and the fifth largest in the world.
During this period, Fiat also acquired Alfa Romeo in 1986, taking it over from the financial crisis while in 1982, the cooperation with Seat was terminated due to disagreements regarding a capital increase requested by the Spanish government. In 1988, after the death of Enzo Ferrari, 90% of Ferrari's shares were acquired by the Fiat Group, thus incorporating the brand into the holding company. Fiat continued its global expansion successfully, focusing on markets such as Latin America, particularly Brazil, while abandoning the difficult North American market in 1982.
In recent years, some models were introduced that became symbols of the company. In 1980 Fiat arrived Panda which became a pillar of the brand thanks to its habitability, robustness and competitive prices. In 1983 it was the turn of the Uno which became the best-selling car in the history of Fiat and was awarded Car of the Year in 1984. Other historic models were the Croma of 1985, developed with SAAB, and the Type of 1988, characterized by innovations such as complete galvanization of the bodywork and digital instrumentation. Fiat also innovated in engines, introducing some engines that are still used today in the current FCA Group city cars. In 1993, Fiat acquired Maserati consolidating its position in the luxury car and sports car segment.
The 2000s: the crisis and the Marchionne era
At the beginning of the new millennium, Fiat faced a serious financial crisis which led to a drastic reduction in sales and the need for restructuring. It was who saved the Group Sergio Marchionne, appointed CEO of Fait in 2004, who played a crucial role in the company's revival. With a clear strategic vision, Marchionne focused his efforts on aggressive restructuring and new successful models, bringing the group out of the crisis and relaunching the brand internationally.
Despite the difficulties of the period, they came launched some models as successful as the new one Panda in 2003, the Grande Punto and especially the new 500. With retro lines inspired by its 1957 predecessor, the 500 was well received by the public and was elected Car of the Year 2008. This model became a symbol of the relaunch of the brand under the leadership of Marchionne, thanks also to its success in international markets , including North America.
Marchionne had the vision of transforming Fiat into the world's second largest automotive group, seeking to acquire other car manufacturers. After acquiring 20% of Chrysler in 2009, Fiat progressively increased its share, reaching 58,5% in 2012 and 100% in January 2014. Thus, FCA, Fiat Chrysler Automobiles, was born. The effective merger takes place on 12 October 2014, with registered office in the Netherlands and tax domicile in the United Kingdom. In 2015, Marchionne proposed a merger with General Motors, which was rejected, and planned a takeover bid, which was later abandoned. In 2019, FCA proposed a merger with Renault that would create the world's third-largest automotive group. Despite Renault's interest, the proposal was withdrawn due to conditions imposed by the French government and Nissan's uncertainties.
Fiat today: merger with PSA, the Stellantis group is born
On October 30, 2019, FCA and the French industrial group PSA, owner of the Peugeot, Citroën, DS Automobiles, Opel and Vauxhall Motors automotive brands, announce merger negotiations. The goal is to create the fourth largest automotive group in the world. On December 18, 2019, the agreement to form a new company with 8,7 million vehicles and revenues of 170 billion euros was made official. The new entity, called Stellantis, has its registered office in Amsterdam and will be led by Carlos Tavares as CEO and John Elkann as president. The merger was approved by shareholders on January 4, 2021 and became effective on January 16, 2021. The new global entity led Fiat to compete in an even broader market, with a diversified product range and a strong focus on sustainability.
Today, Fiat confirms itself as the best-selling brand of the Stellantis group in 2023, with a 12% increase in global sales compared to the previous year, reaching 1,35 million vehicles delivered. In Italy, Fiat holds a 12,8% market share, with the Panda at the top of sales. In Brazil, where Fiat has a 21,8% share, the best-selling model is the Strada. The 500e is the best-selling car in the A-segment in Europe, with a share of 14,7%. Commercial vehicles, such as the Ducato, also recorded excellent results.
To celebrate the 125 years of the Turin company, Fiat will officially present the new Fiat Grande Panda, a full electric model that will coexist with the current version of the Panda until 2029.
