Fiat

The Fiat story is written, first and foremost, in the quality of its technologies and products, in the scope and diversity of its manufacturing operations, in its business triumphs, in its presence in markets throughout the world. But the Fiat story is also to a large extent the story of the Italian economy, of the development of a country that has established itself as a leader among the industrial nations. This story can be told, on the one hand, in terms of the outstanding personalities that have shaped its course and, on the other, in terms of a series of trailblazing, diversified products, each one reflecting the stages of Fiat’s growth and making its own special contribution to the structure and success of the Company, as it advanced from its first beginnings to the worldwide stature it enjoys today.

One of the earliest logos used by Fiat at the beginning of this century.

Fiat - an acronym for Fabbrica Italiana Automobili Torino - was founded in 1899 by a group of investors, among them Giovanni Agnelli, with the acumen to take advantage of the creative ferment and favorable social environment that characterized Turin, a city that ever since has been a laboratory of innovations, especially in the field of manufacturing.

Fiat automobiles achieved instant popularity, not only on the Italian market, but also internationally, as a luxury item designed for a consumer elite.

At the same time, the Fiat brand won recognition in car racing, speeding across the finish line with such stars as Lancia, Storero, Miller and Nazzaro at the wheel. From the very outset, Fiat established sales outlets and manufacturing plants abroad. One example was the Poughkeepsie factory in the United States, which was inaugurated in 1909.

During this period, the Company created the environment for a period of remarkable industrial growth by expanding the scope of its activities,which ranged from cars to trucks, from tractors to trains and from marine engines to aircraft.

This approach reflected the vision of Giovanni Agnelli, who was already planning methods to strengthen the production system.
The result was the Lingotto Project - in its day, the biggest automotive complex in Europe - which went on stream in 1922.

The project was based on a specific strategy: to transform the automobile from a product for the elite to one available to the steadily growing mass of ordinary consumers. This was accomplished, thanks to the new principles of industrial organization based on the assembly line.

A picture of the Fiat Lingotto plant in its heyday.

The 1932 Balilla.

Accordingly, in 1932, the Balilla made its debut with a production run of 113,000 cars. The Fiat 500, the legendary Topolino and the world’s smallest subcompact, followed in 1936. Designed by Dante Giacosa and produced from 1936 to 1955 in a series of 519,000, its various models were destined to launch the automobile in Italy and trigger the development of general motor vehicle use.The difficulties attendant on the outbreak of World War II brought this process to a temporary halt.

Senator Giovanni Agnelli, who died in 1945, was not destined to see the great expansion that took place under his close associate and successor as Chairman, Vittorio Valletta. A key element in this expansion was the Mirafiori plant, inaugurated in 1939 to enlarge production capacities.Valletta was convinced that Italy was on the verge of a phase of immense industrial growth.
Fiat’s task was to produce the type of automobile that the big American firms were not making: cars with smaller engines that everyone could afford.

The 1936 Topolino.

Many new models came off the line during the post-war manufacturing boom: in 1948, the Fiat 500 B two-door sedan and station wagon, the 1100 B and 1500 D; then, a year later, the 500 C, the 1100 E and the 1500 E.

The 50’s began with the start-up of production of the 1400, a model with unitized body construction, which, as of 1953, was the first Italian vehicle to be offered in a diesel version as well. In the same year, Mirafiori produced the 1100/103 sedan and the multipurpose 103 TV. Midway through the decade, the little Seicentos and Cinquecentos changed the face of Italy, making cars available to everyone. Produced by the million, these affordable cars introduced Italians to the world of the automobile and became a symbol of the economic miracle, embodied in the industrial transformation of their country.

The Mirafiori plant in 1948: Assembly of the Fiat 500B and 1100B.

The "Cinquecento", in the mid-50's, it gave every Italian a chance to own a car.

Ten years later, in the wake of these successes and management's far-seeing intuition, there appeared another outstanding subcompact, the 850, of which about 3 million would be produced. In 1966, Giovanni Agnelli, the founder’s grandson, became Chairman of the Company and initiated a series of projects to reinforce its international presence.
In fact, in that very year, Fiat signed an agreement with the USSR to construct the VAZ automotive complex in Togliattigrad, designed to manufacture 2,000 model 124s a day.

At the same time as it was enhancing its line with the various versions of cars ranging from the Dino to the 128, 130, 127 and 126, Fiat was building production plants in Southern Italy, Poland, Russia and Brazil, disseminating throughout the world Italian automotive know-how - including the expertise gained through the acquisition of the Autobianchi and Lancia brands - and its unique industrial design.

During this period, owing in part to the oil crisis of the 70’s, the emphasis was on product and process innovation, which would lead, with the aid of increasingly high levels of automation, to a new method of car-making. The production of the Ritmo, launched in 1978, represented a milestone in manufacturing technology, thanks to the use of Robogate, a revolutionary automated system.

The true turning point in the renewal of Fiat Auto occurred in 1983 with the introduction of the Uno, a car that offered a wide gamut of innovations: in electronics, in the use of alternative materials and in engine technology, with the adoption of the Fire 1000 clean power plant. This strategy of renewal was also reflected in the Group's industrial policy and resulted in the acquisition of Alfa Romeo and its affiliates by Fiat Auto in 1986.

This new approach permitted the introduction of such leading-edge products as the Alfa 164, followed by the other models that won the heart of Alfa enthusiasts, including the Alfa 156, launched in 1997 and honored with the Car of the Year award.

As the need to expand the Company's reach became more pressing at the beginning of the 90's, Fiat responded by developing new models designed for a broader and more competitive market.
In 1993, the implementation of this strategy resulted in the introduction of the Punto, an intermediate car specifically designed to meet the needs of European customers.

The Fiat 487 T marine diesel engine installed on the MS Torres, 1939.

But, as we have already seen, Fiat has never meant automobiles alone. Over the years, it has developed a wide variety of activities and products, ranging from agricultural and construction machinery to aviation equipment, commercial vehicles and production systems.In the early years of the 20th century, Fiat began to construct streetcars and buses, to respond to the growing need for mass transit. Also during this period, its factories produced their first trucks for freight haulage, including the famous model 18 BL, 20,000 of which were manufactured from 1914 on.

The 18 BL was the ancestor of a complete product line, which today extends from light transport vans to quarry and construction vehicles and to huge, long-distance highway trucks, including the TurboStar, launched in the 80's, and the recently introduced EuroStar, Euro Trakker and EuroCargo.

The Fiat 635 bus, 1932-39.		Fiat has also made major breakthroughs in railroad technology, where it has been active since 1917. These range from the world’s first electric diesel locomotive, built in 1922, to the first tilting-body train, the first prototype of which was produced in 1969. The ETR 401, a 250-Km/h train known as the Pendolino, was put into service in 1975 by the Italian and Spanish Railways.Thanks to subsequent innovations, it still sets the standard for rail transport and has been purchased by railroads in many other countries.
In 1919 came the 702, Fiat’s first “earth machine,” bearing witness to the Company’s intention to play an immediate role in Italian agriculture. This intention was confirmed in 1939 with the 40 Boghetto (named after the designer), the first big tractor for challenging plowing assignments, and, in 1956, by the “baby” Fiat 18 tractor, known as the subcompact of farming, which heralded the transition to the new motorized agriculture.	The Fiat 411R tractor.

The 60's, with the success of the Diamante and Nastro d' Oro series, saw the Sector broaden its product range and enter new markets.

During the following decade, it strengthened its position with the acquisition of Laverda, Hesston and Agrifull, followed by the purchase of Braud in 1984, thus developing a complete line of high-tech equipment.

Operating under the New Holland brand, the Agricultural and Construction Equipment Sector is now present in Europe, North America, Africa, Asia and Brazil.

The Fiat G91R jet fighter, 1959

Fiat has also left its mark on the aircraft industry. Back in 1908, at the dawn of aviation, it produced its first engine, the Fiat SA 8/75; its first airplane came off the line in 1915. But the turning point in aeronautic design came with the introduction of the Series G planes designed by Giuseppe Gabrielli. The G 91 jet fighter won the NATO competition in 1955 and was then adopted by a number of air forces. To take advantage of the opportunities offered by a broader international market, the Aviation

Sector embarked on a new strategy based on the development of new aircraft engines and components through collaboration agreements with such top-notch partners as Rolls Royce, General Electric, Pratt & Whitney and Aerospatiale.

The Tornado fighter aircraft, whose maiden flight took place in 1974, is an outstanding example of this synergistic approach.

All these elements of diversification that make up the Fiat story have undoubtedly contributed to the success of the globalization strategy that the Company has always pursued.

A presence in markets around the globe is an integral part of the Fiat Group’s strategy, which is focused today on such emerging countries as India and China in Asia, and Brazil and Argentina in Latin America. The Group, in the course of its development, has always regarded the international market as a challenge to be met - and conquered.