Giovanni Battista Ceirano built Welleyes bicycles in a small workshop near the home of wealthy soup manufacturer Guiseppe Lancia. In 1898, Guiseppe's son Vincenzo Lancia joined Ceirano as an apprentice. The first Welleyes car was developed by Aristide Faccioli and appeared in March 1899. In the first reliability run in which the Welleyes competed, it attracted the attention of a group of industrialists, and four months later Ceirano's company was acquired by the Fabbrica Italiana di Automobili Torino (F.I.A.T.), headed by Giovanni Agnelli, Count Carlo Biscaretti di Ruffia and Emanuele Bricherasio. F.I.A.T. also took over a number of employees including Vincenzo Lancia, Felice Nazzaro and designer Faccioli, who built the first F.I.A.T.

When Fiat moved into a new factory with 50 staff on Corso Dante in 1899, Vincenzo Lancia became the first test driver. In 1900 he won a race in Padua ahead of a Panhard-Levassor and a Fiat with Nazzaro at the wheel.

In 1901, the directors asked Faccioli to develop a new model with the engine at the front. Faccioli refused and was replaced by Ing. Enrico, who in 1902 came up with a new model along Mercedes lines.

The wooden chassis were changed to steel ones in 1904, F.I.A.T. then built luxury cars in small numbers.

In 1906 the dots in the name disappeared and it became Fiat, also in that year Lancia left Fiat to start for himself.

The first mass production model was the type Zero in 1912.

After World War I, Fiat was successful with the 501, designed by Cavalli and built until 1926. In 1925, the 509 was introduced, a more modern light car.

The 1932 Fiat 508 Ballila was a great success. The car was built under license, in Germany by NSU, in Czechoslovakia by Walter, in Poland as Polski Fiat and in France as Simca.

In 1936 came the immortal 500 Topolino. The Topolino remained in production virtually unchanged until 1948. The 500C, the last version of the Topolino, was succeeded in 1955 by the new 600 with self-supporting body and the engine in the rear. Of these, more than a million were sold until 1960. In 1957, the 500 came out and was not replaced by the 126 until 1972, after more than 3 million had been built.

The popular 124 was introduced in 1966 and was produced under license in many countries, especially Eastern Bloc countries.

In 1969 Fiat took over Lancia and Ferrari, in 1971 Abarth and in 1987 Alfa Romeo.

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