Giovanni Agnelli was among the founding members of FIAT, Fabbrica Italiana Automobili Torino, on 11 July 1899. The first Fiat plant opened in 1900 with 35 staff members, producing 24 cars. By 1903, Fiat produced 135 cars, a number that grew to 1,149 cars by 1906. The company went public, selling shares on the Milan stock exchange. Agnelli led the company until his death in 1945, while Vittorio Valletta managed the firm's daily operations. The first Fiat car, the 3 ½ CV, was based on a design purchased from Ceirano GB & C and featured a 697 cc boxer twin engine. In 1903, Fiat produced its first truck, and in 1908, the first Fiat was exported to the US. That same year, the first Fiat aircraft engine was produced, and Fiat taxis became popular in Europe.
By 1910, Fiat was the largest automotive company in Italy. A new plant was built in Poughkeepsie, NY, by the American FIAT Automobile Company in 1910. In 1911, 1,800 automobiles and 400 trucks were produced in Italy. During World War I, Fiat factories were dedicated to supplying aircraft, engines, machine guns, trucks, and ambulances to the Allies. After the war, Fiat introduced its first tractor, the 702. By the early 1920s, Fiat held an 80% market share in Italy. In 1921, workers seized Fiat's plants, leading Agnelli to resign. However, the occupation ended following an effort to compromise with centrist parties. In 1922, Fiat began construction of the Lingotto car factory, which opened in 1923 and was the largest in Europe at the time. It was the first Fiat factory to utilize assembly lines, and by 1925, Fiat controlled 87% of the Italian car market. In 1928, Fiat included insurance in the purchase price of its 509 model.
Fiat manufactured military machinery and vehicles during World War II. In 1943, the National Liberation Committee removed the Agnelli family from leadership roles due to their ties to Mussolini's government. They were reinstated in 1963 when Giovanni's grandson, Gianni, became general manager until 1966, and chairman until 1996.
In 1970, Fiat employed over 100,000 people in Italy, with production reaching a peak of 1.4 million cars in the country. As of 2002, Fiat operated six plants in Italy, producing over 1 million vehicles, with Italy accounting for more than a third of the company's revenue. Towards the end of 1976, the Libyan government was set to acquire a shareholding in Fiat in exchange for a capital injection, which included the construction of a truck and bus plant in Tripoli.
Fiat's market share in Europe, which was 9.4 percent in 2000, shrank to 5.8 percent by the summer of 2004. Sergio Marchionne was appointed Fiat's chief executive at this point. By March 2009, the market share had expanded to 9.1 percent. Marchionne introduced an informal work climate and reduced the chain of command. He withdrew Fiat from Confindustria and Federmeccanica and canceled the national collective labor agreement in the engineering sector, initiating separate negotiations for a new company agreement in the automotive sector, starting with the Pomigliano production plant.
Fiat built its five-story Lingotto plant between 1915 and 1918, which was Europe's largest car manufacturing plant at the time. Later, the Mirafiori plant was constructed in Turin. To prepare for the production of the Fiat 128, Fiat opened its Rivalta plant in October 1968. Before the 128 entered production, the plant was used to build sports versions of the 850 and 124, as well as parts for the Fiat Dino.
Fiat's 2018 range of passenger car engines included eleven units: eight petrol and three diesel. The company's model range at that time included the Fiat 500 and Fiat Panda in the city car segment, the Fiat Tipo as a compact car, the Fiat 500L as a mini MPV, the Fiat 500X as a mini SUV, and the Fiat 124 Spider as a roadster. Fiat sales in 2011 totaled 676,704 units, a decrease of 17.3% compared to the previous year. Light commercial vehicles were sold in Europe under the Fiat Professional brand.
Fiat was exporting cars to the UK market by the outbreak of World War II in 1939. Its market share increased significantly during the 1970s, with the 127 supermini and 128 small family cars being top sellers, valued for their practicality and efficiency. Fiat's market share grew further in the 1980s with the Fiat Uno, which was imported to the UK from June 1983 and became the company's best-seller. Its share declined sharply in the early 1990s before the introduction of the Punto in March 1994 revitalized the company's UK performance. The second-generation Punto was a strong seller after its October 1999 launch, but the modern Fiat 500, launched in January 2008, has been responsible for the majority of the company's UK sales in recent years. The original Fiat 500 was a direct competitor to the Mini during the 1960s.
Fiat has a long history of investment in South America, particularly in Brazil, where it has been the market leader for many years, and in Argentina. The first Brazilian car plant was built in Betim, Greater Belo Horizonte, in 1973, after initial tractor assembly. The Brazilian range includes models derived from a common platform (Project 178), such as the Palio, Siena, Palio Weekend, and Strada. More recent models developed in Brazil include the Pulse, Fiorino, Toro, Argo, and Mobi. European models like the 500e (imported from Italy) and Cronos (imported from Argentina) are also sold in Brazil. Fiat also sells European Fiat Professional light commercial vehicles in Brazil, including the Strada, Ducato, and Fiorino.
In 1908, the Fiat Automobile Co. was established in the United States, with a factory in Poughkeepsie, NY, beginning production in 1909 of models like the Fiat 60 HP and Fiat 16-20 HP, which were luxury cars. The New Jersey factory closed after the U.S. entered World War I in 1917. Fiat returned to North America in the 1950s, selling models such as the original 500, Fiat 600 Multipla, Fiat 1100, Fiat 1200, and Fiat 1300 from 1961. Models produced from the 1960s onward included the Fiat 124 Sport Spider and the Fiat X1/9. These two sports cars achieved considerable success in the United States market, accounting for nearly sixty percent of total production in 1980. Fiat developed a reputation for selling cars of poor quality in North America, primarily due to rust and reliability issues. The last new Fiat model introduced in North America during this period was the Strada in February 1979. US sales declined from a peak of 100,511 cars in 1975 to 14,113 in 1982. Consequently, Fiat exited the United States car market in 1983, although the Spider and X1/9 continued to be sold in limited numbers under Pininfarina and Bertone badging, respectively.
In January 2009, the Fiat Group acquired a 20% stake in American automaker Chrysler LLC, marking the return of the Fiat brand to North America after a 25-year absence. The first Fiat-branded model to be offered was the Fiat 500 city car, built at Chrysler's assembly plant in Toluca, Mexico. Fiat also began selling its commercial vehicles, the Fiat Ducato and Fiat Doblò, in North America, rebranded as Ram ProMaster and Ram ProMaster City, respectively. Fiat discontinued production of the Fiat 500 in 2019, with sales of remaining dealer stock continuing into 2020. The 124 Spider and 500L models were also discontinued in 2020. Fiat announced plans to release a new plug-in 500e in 2024.
Fiat passenger cars began assembly in South Africa in 1950, with full production at its Rosslyn plant commencing in 1966. Sales reached a peak market share of approximately five percent around 1970 but subsequently declined. A new 128-based half-ton pickup truck helped to improve the situation. Fiat also assembled vehicles in Egypt through El-Nasr Automotive Manufacturing Company, which assembled Fiat models 125, 127, and 128. On 13 October 2022, Fiat Brand and the Algerian government signed a framework agreement for local vehicle production and the development of the automotive sector in Algeria.
Fiat's presence in the Chinese market was limited compared to its European, Japanese, Korean, and American competitors. In early 2012, Fiat was only importing the Fiat Bravo and Fiat 500 models. However, in 2012, Fiat and GAC established a joint venture plant to produce the Fiat Viaggio, a compact car derived from the Dodge Dart (which in turn was derived from the Alfa Romeo Giulietta). Fiat currently offers the 500 in coupe and convertible body styles, along with the Panda, to Japanese consumers. Fiat was present in the Indian market from 1948 until 2019, operating in a joint venture with Tata Motors before becoming independent in 2012.
FIAT discontinued production of the Fiat 500 in 2019, with sales of leftover dealer stock continuing into 2020. FIAT also discontinued the 124 spider and 500L models in 2020.
Fiat Automobiles has received numerous international awards for its vehicles, including nine European Car of the Year awards, more than any other manufacturer. Fiat models have been awarded this title in 1967 (Fiat 124), 1970 (Fiat 128), 1972 (Fiat 127), 1984 (Fiat Uno), 1989 (Fiat Tipo), 1995 (Fiat Punto), 1996 (Fiat Bravo/Brava), 2004 (Fiat Panda), and 2008 (Fiat 500). Fiat Automobiles has consistently ranked among the lowest in terms of CO2 emissions from vehicles sold in Europe. In 2008, Fiat achieved an average CO2 emission value of 133.7 g/km, an improvement from 137.3 g/km in 2007, as confirmed by JATO.
In motorsport, the Fiat 124 Sport Spider was prepared for the World Rally Championship in 1971, with Abarth involved in its production and development. From 1972, it achieved relative success with two wins in 1972, one in 1973, and secured 1st, 2nd, and 3rd places in the 1974 Portuguese TAP Rally. The Fiat 131 Abarth was a highly successful rally car that replaced the 124. Between 1976 and 1981, the Fiat 131 won 18 World Rally Championship events, securing the WRC Drivers Championship twice (1978 and 1980) and the WRC Constructors Championship three times (1977, 1978, and 1980). Lancia took over the role of motorsport for the Fiat Group in the 1980s. After a significant break from factory-supported entries, a Fiat Punto S1600 won the Italian Rally Championship in 2003. In 2006, the Fiat Grande Punto S2000 won the FIA European Rally Championship, followed by three consecutive wins in 2009, 2010, and 2011.
Fiat began developing electric vehicles in the mid-1970s, with the Fiat X1/23 concept. In 2008, Fiat presented the Phylla concept and the Fiat Bugster concept in Brazil. Fiat collaborated with utility companies Cemig and Itaipu to develop new electric vehicles for Brazil, with the Palio Weekend Electric entering production in 2009. Fiat launched the electric 500e, a compliance car, in California in 2013, but no sales were planned for Europe. Fiat CEO Sergio Marchionne stated in 2014 that each unit was sold at a loss of $14,000. In 2016, following Tesla's announcement of the Model 3 and a high number of reservations, Marchionne questioned Tesla's production profitability and stated that if Elon Musk could demonstrate profitability at that price, he would copy the formula, add Italian design flair, and bring it to market within 12 months.
The European Car of the Year award has been presented to Fiat Group models twelve times in the last forty years, more than any other manufacturer. Nine of these awards were won by Fiat Automobiles models. ```
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