The establishment of Fiat, or Fabbrica Italiana Automobili Torino, in Turin, Italy, by Giovanni Agnelli marked a significant milestone in the automotive industry. The company was founded on July 11, 1899, by Agnelli and ten partners, who recognized the potential of the automobile market in Italy and sought to capitalize on it. By pooling their resources and expertise, they aimed to create a brand that could compete with established European automobile manufacturers. Agnelli’s vision was to produce reliable, high-quality vehicles, which would not only capture the interest of Italian consumers but also appeal to international markets.

Fiat began its journey with the production of its first automobile, the Fiat 3½ HP, in 1900. With a modest output of 24 cars in its inaugural year, the company quickly gained popularity for its innovative designs and technological advancements. The introduction of assembly line production methods in subsequent years allowed Fiat to scale up manufacturing significantly. Under Agnelli’s leadership, Fiat diversified its product offerings and ventured into the production of commercial vehicles and military transport, solidifying its role as a versatile automaker.

Fiat's expansion was accompanied by a commitment to motor racing, which heightened the brand's visibility and reputation for performance. The company grew rapidly, contributing significantly to the economic landscape of Italy. By the early 20th century, Fiat had become the dominant automobile manufacturer in Italy, establishing a legacy that would endure beyond the founder's lifetime. The foundational values instilled by Agnelli, such as innovation and quality, continue to resonate within the company, making Fiat a lasting icon of Italian engineering excellence.