Fabi was European Karting Champion in 1975 and won the European Formula Ford 1600 title in 1977. He competed in European Formula Three in 1978 for Forti Corse in a March-Toyota, taking wins at Circuit Zolder, Dijon-Prenois and Autodromo Vallelunga Piero Taruffi, and finishing fourth in points with 45.
In European Formula Two in 1979, Fabi drove for March Racing in a March 792-BMW, with a best finish of second at Circuit Park Zandvoort. He returned in 1980 for the ICI Roloil Racing Team in a March 802-BMW, winning at the Jim Clark Rennen at Hockenheimring, the Eifelrennen at Nürburgring, and the Preis Baden-Württemberg at Hockenheimring. He also took pole at the Grote Prijs van België Formel 2 at Circuit Zolder and at the Preis Baden-Württemberg, setting fastest lap in the latter en route to victory. He ended the season third in points with 38.
Fabi moved to Formula One in 1982 driving the No. 36 Candy Toleman TG181C-Hart 415T. Under pressure from Toleman manager Alex Hawkridge during a drivers' strike at the season-opening South African Grand Prix, Fabi was the only driver to break the strike. The TG181C was uncompetitive and the team focused on lead driver Derek Warwick; Fabi qualified for only six of a possible fourteen races. His best finish was seventh, eight laps down, at the San Marino Grand Prix.
Fabi's 1983 Indy car season rekindled Formula One interest. With backing from Italian dairy company Parmalat, he joined Brabham in 1984 to drive the No. 2 Brabham BT53-BMW alongside reigning World Champion Nelson Piquet. He also continued in CART/PPG World Series for Forsythe Racing and missed three Grands Prix, with his younger brother Corrado Fabi substituting in those races. Fabi scored points on three occasions, with a best finish of third at the Detroit Grand Prix, ending the season twelfth in points with nine.
Brabham dropped Fabi for 1985. He rejoined Toleman (now heavily sponsored by the Benetton Group) when they belatedly entered the season at the Monaco Grand Prix, driving the No. 19 Toleman TG185-Hart 415T. The team had lost its Michelin tyre supply at the end of 1984 and could not access Goodyear tyres; Benetton bought both Toleman and the Spirit team, transferring Spirit's Pirelli contract to Toleman. Despite mechanical unreliability, Fabi's speed brought the marque its only pole position, at the German Grand Prix at the new Nürburgring. A slipping clutch ruined his race from the start. His best finish was twelfth at the Italian Grand Prix.
Fabi drove for Benetton Formula in 1986 in the No. 19 Benetton B186-BMW M12, alongside young Austrian Gerhard Berger. The BMW qualifying engines produced around 1,400 bhp. The Benetton was fast but fragile on difficult Pirelli tyres. Fabi took pole positions at the Austrian Grand Prix and the Italian Grand Prix — both among the fastest circuits on the calendar, the Österreichring and Autodromo Nazionale Monza. His best race finish was fifth at the Spanish Grand Prix. He ended the season fifteenth in points.
In 1987, Fabi continued at Benetton in the No. 19 B187-Ford Cosworth GBA V6, joined by Thierry Boutsen. The Ford V6 suffered early-season reliability problems at higher turbo boost in an effort to keep pace with Honda-powered Williams and Lotus cars, and with the TAG-engined McLarens. When boost was reduced from mid-year, reliability returned but speed was sacrificed. Fabi achieved a best finish of third at the Austrian Grand Prix at the Österreichring. During the season Alessandro Nannini was signed to partner Boutsen for 1988. In Fabi's final race, the Australian Grand Prix, he spent many laps deliberately blocking Boutsen and refusing to be lapped despite blue flags and team orders. When Boutsen confronted him afterward, Fabi told him to "come back and see me when you have a pole position." Boutsen ended his career with three wins and one pole position. Fabi ended the 1987 season ranked a career-best ninth.
Fabi joined the CART/PPG World Series in 1983 for Forsythe Racing in the No. 33 Skoal Bandit March 83C-Cosworth DFX. He made his debut at the Kraco Dixie 200 at Atlanta International Speedway, starting ninth and retiring after 41 laps with suspension failure. At the Indianapolis 500, Fabi qualified on pole with a track record speed of 207.395 mph for four laps and a one-lap record of 208.049 mph, becoming the first rookie to take pole since Walt Faulkner in 1950. He led 23 of the first 47 laps before retiring during his second pit stop due to a broken fuel filter. He was credited with twenty-sixth place and won the rookie of the year award.
Fabi won the Domino's Pizza 500 at Pocono International Raceway, the Escort Radar Warnings 200 at Mid-Ohio Sports Car Course, and the Cribari Wines 300K at Laguna Seca Raceway. The championship was decided at the season-ending Miller High Life 150 at Phoenix International Raceway, where Fabi took pole, led 138 of 150 laps, and won — yet Al Unser clinched the title by finishing fourth.
In 1984, Fabi returned with Forsythe Racing in the No. 33 Skoal Bandit March 84C-Cosworth DFX. At the Indianapolis 500 he qualified fourteenth and retired in twenty-fourth place after 104 laps due to fuel system failure. His best finish was third at the Stroh's/G.I. Joe's 200 at Portland International Raceway. He departed after the Budweiser Cleveland Grand Prix to concentrate on Formula One, ending the season twenty-fifth in points.
At the 1984 Indianapolis 500, Fabi became the last active Formula One driver to race at the event until Fernando Alonso in 2017.
Fabi returned to Indy car racing in 1988 with Porsche Motorsports in the No. 8 Quaker State March 88P-Porsche Indy V8. The Porsche engine was less competitive than the Ilmor-Chevrolet and Cosworth units. He managed a best finish of fourth at the Bosch Spark Plug Grand Prix at Pennsylvania International Raceway. At Indianapolis he qualified seventeenth and finished thirtieth after losing a wheel after 30 laps.
In 1989, driving the No. 8 Quaker State March 89P-Porsche Indy V8, the team became more competitive. Fabi took pole at the Budweiser/G.I. Joe's 200 at Portland International Raceway and pole at the Red Roof Inns 200 at Mid-Ohio Sports Car Course, where he led 71 of 84 laps to take his last Indy car victory. He also achieved second at the Marlboro 500 at Michigan International Speedway. He ended the season fourth with 141 points.
In 1990, Fabi drove the No. 4 Foster's-Quaker State March 90P-Porsche Indy V8. Porsche had planned an all-carbon-fibre chassis with March Engineering, but competitors voted against it in January, forcing use of the year-old March 89P. At Indianapolis he started twenty-third and retired after 162 laps with transmission problems. He took pole at the Texaco/Havoline Grand Prix of Denver but crashed after seven laps. His best finish was third at the Marlboro Grand Prix at Meadowlands Sports Complex. He ended the season fourteenth in points. Porsche then withdrew from Indy car racing.
Fabi returned in 1992 to substitute for Mario Andretti, who was injured at Indianapolis, driving for Newman-Haas Racing in the No. 2 Texaco Havoline/K Mart Lola T92/00-Ford Cosworth XB at the ITT Automotive Grand Prix of Detroit. He qualified third and finished sixth.
For 1993, Fabi drove for Hall VDS Racing in the No. 8 Pennzoil Lola T93/00-Ilmor-Chevrolet Indy V8 265C, achieving a best finish of fourth at the Toyota Grand Prix of Long Beach. At Indianapolis he started seventeenth and finished ninth. He ended the season eleventh with 64 points.
In 1994, for the re-organised Hall Racing, Fabi drove the No. 11 Pennzoil Reynard 94i-Ilmor Indy V8, recording a trio of third-place finishes at the ITT Automotive Grand Prix of Detroit, the Marlboro 500 at Michigan International Speedway, and the Texaco/Havoline 200 at Road America. At Indianapolis he qualified twenty-fourth and finished seventh, his best result in the race. He was ninth in points with 79.
In 1995, Fabi returned with Forsythe Racing in the No. 33 Combustion Engineering/Indeck Reynard 95i-Ford Cosworth XB, with a best finish of third at the Toyota Grand Prix of Long Beach. At Indianapolis he started fifteenth and finished eighth. He ended the season ninth with 83 points.
For 1996, Forsythe Racing replaced Fabi with Indy Lights driver Greg Moore. Fabi made two appearances for PacWest Racing in the No. 21 Motorola Reynard 96i-Ford Cosworth XD, substituting for the injured Mark Blundell, at the Toyota Grand Prix of Long Beach and the Bosch Spark Plug Grand Prix at Nazareth Speedway. Blundell returned for the U.S. 500 at Michigan International Speedway and Fabi was withdrawn; he scored no points for the first time in his career.
Fabi competed in Can-Am in 1981 for Newman Freeman Racing in the No. 6 Budweiser March 817-Chevrolet V8, taking four wins at Mosport Park (twice), Mid-Ohio Sports Car Course, and Laguna Seca Raceway, and finishing second in points with 456 points.
In the World Sportscar Championship, Fabi drove for Scuderia Lancia Corse in 1980 and for Martini Racing from 1982. In 1982 in the No. 51 Lancia LC1-Lancia 1.4L Turbo I4, he won the 1000km of Nürburgring alongside Michele Alboreto and Riccardo Patrese, and competed at the 24 Hours of Le Mans with Alboreto and Rolf Stommelen, qualifying fourth but retiring after 92 laps with engine failure. He finished the season fourth with 66 points.
In 1983, Fabi won the 1000km of Imola at the Autodromo Dino Ferrari in a Lancia-engined car alongside Hans Heyer. He also drove at the 24 Hours of Le Mans, retiring after 27 laps with gearbox failure.
In 1991, Fabi raced for Tom Walkinshaw Racing/Silk Cut Jaguar in the No. 34 Jaguar XJR-12 and Jaguar XJR-14. He won the Castrol BRDC Empire Trophy at Silverstone alongside Derek Warwick. At the 24 Hours of Le Mans, driving the XJR-12 with Bob Wollek and Kenny Acheson, he started twenty-seventh and finished third with 358 laps. Fabi won the World Endurance Championship for Drivers with 86 points.
In 1992, Fabi competed for Toyota Team Tom's at the 24 Hours of Le Mans in the No. 8 Toyota TS010-Toyota RV10 3.5L V10 alongside Jan Lammers and Andy Wallace, starting fourth and finishing eighth.
In 1993, with the World Sportscar Championship having collapsed, the 24 Hours of Le Mans ran as a standalone event. Fabi drove for Peugeot Talbot Sport in the No. 1 Peugeot 905 Evo 1B alongside Thierry Boutsen and Yannick Dalmas, starting and finishing second overall with 374 laps completed.
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