Figure 1.-- This photo shows a family posing with its Fiat Balilla. The name honors a boy hero of the fight for independnce in the fight for independence from the Austrians. The photograph was taken in Rome during 1935. Thh Fiat Balilla was a 1 liter displacement car, essentially a low-cost compact car. It is a fascinating image because the family is clearly a substantial one, but they seem rather out of place owning a budget car. Notice their son in his Balilla uniform--the Fascist youth group also named fter the boy hero. Only the rich and upper middle-class in Italy could afford a car. Th result was that Italian auto compasnies at therir pre-War peak only produced about 55,000 moyoir vehicles. That is less than a fractiom of 1 prcent of American production. Italy of course had a smaller population, but was not a small country--about a third of the American population. Even so motor vehicle production was miniscule. This mean that des[pite Mussolini's bombastic speeches--Italy was in no position to engage in a major war.

The Italian automobile sector was very small. Few Italian workers could afford a car. The industry began in the late 19th century. Enrico Bernardi built a gasoline-fueled tricycle (1884). Stefanini-Martina was the first manufacturer (late-1880s). Giovanni Battista Ceirano started building Welleyes bicycles (1888). He decided an English name provided an up-scale image. Ceirano formed a joint venture with his brothers Matteo, and Ernesto to build the Welleyes motor car -- Ceirano GB & C (1898). The brothers quickly encountered financial problems. A consortium of well-heeled local nobility and businessmen led by Giovanni Agnelli purchased the Welleyes operation including the designs and patents (1899). The consortium was FIAT. The Welleyes/FIAT 4 HP had a 679 cc engine and was capable of 22 mph. Isotta Fraschini opened a plant (1900). They produced the first Renault. Other plants soon followed, including, Aquila Italiana, Fratelli Ceirano, Societé Anonima Italiana Darracq - Darracq, Diatto, Itala, Junior, Lancia, Societé Ceirano Automobili Torino, S.T.A.R. Rapid, SPA, and Zust. These were all small operations essentially craft shops producing small numbers of high-priced for wealthy individuals. No one was trying to produce really low-cost cars for the public. The Fiat Balilla was the loeest price Italian pre-War car, but hardly something tht workerrs could even dream of purchasing. Of course, the major factor here was that Italian workers were not as well paid as Americans and could not afford to buy cars. Italian compnies competed in races to establish their technological cometence. The competition was over producing the more powerful engines. There was no compny doing what Ford did, gettingb the cost of producvtion down. Over time many of these concerns went out of business or were purchased by FIAT. The Iltalians after World War I produced about 35,000 motor vehicles (1924). The industry peaked af some 55,000 vehicles (1928), but during the Depression and lead up to World War II, production declined to only about 44,000 vehicles (1935). These numbers are a fraction of 1 percent of American production. In an industrial war of movement, these numbers show that Italy despite Mussolini's blustering was not in a position to fight a modern war. Invading Ethioipia and Albania was one thing, fighting a modern army was a very different matter. The Italian World War II soldier is often derided. A large part of the responsibility for the failure of Italian arms was poor leadershipo and a lack of modern equipment. The Italians did build some tanks, but they were not up to World War II standards. Again, they worked in Ethiopia, but against the British in the Western Desert the Italian tanks were were hopeless.

Early Automotive Industry

The Italian auotomible industry began in the late 19th century. Enrico Bernardi built a gasoline-fueled tricycle (1884). Stefanini-Martina was the first manufacturer (late-1880s). Giovanni Battista Ceirano started building Welleyes bicycles (1888). He decided an English name provided an up-scale image. The Turin car cluster played a key role. 【Enrietti, et. al.】 Ceirano formed a joint venture with his brothers Matteo, and Ernesto to build the Welleyes motor car -- Ceirano GB & C (1898). The brothers quickly encountered financial problems. A consortium of well-heeled local nobility and businessmen led by Giovanni Agnelli purchased the Welleyes operation including the designs and patents (1899). The consortium was the Fabbrica Italiana Automobili Torino (FIAT). Their first car was Fiat 3 ½ HP. Theyb produced eight cars. 【Anonymous】 The Welleyes/FIAT 4 HP had a 679 cc engine and was capable of 22 mph. Isotta Fraschini opened a plant (1900). They produced the first Renault. Other plants soon followed, including, Aquila Italiana, Fratelli Ceirano, Societé Anonima Italiana Darracq - Darracq, Diatto, Itala, Junior, Lancia, Societé Ceirano Automobili Torino, STAR, Rapid, SPA, and Zust. These were all small operations essentially craft shops producing small numbers of high-priced for wealthy individuals. FIAT won the first of its many victories in automobile racing. Vincenzo Lancia, won the Torino Sassi-Superga (1902). Anonima Lombarda Fabbrica Automobili (ALFA) which became Alfa Romeo was founded (1910). Basic and technical education was important in early developments. 【Enrietti, et. al.】 Wesee the many small producers manufacturing large, prestigious, luxury vehicles. While many of the early Italian cars were trechnically sound, no Italian company was trying to produce really low-cost cars for the public. The Fiat Balilla was the lowest price Italian pre-War car, but hardly something that workers could even dream of purchasing. Of course, the major factor here was that Italian workers were so poorly paid that they could not afford to buy cars. Wages in the north approached European levels, but many in southern Italy were outside the monied economy. This was essentially the worst situation for any of the major Europpean powers.

World War I

One report reveals that by the 1910s, there were more than 15 different automotive manufacturers in Turin aline. Many were very small companies unabke to compete with larger foreign companies, even in Europe. As a result the small Italian autiomotive industry played vuirtually no role in World War I. The companies converted to war prodyuction, but their production was too limited to have any real impact. Anonima Lombarda Fabbrica Automobili (SCAT) was a typical example. The company was founded (1906). The company was parucularly notable for its racing success, oncluding three Targa Florio wins (1911-14). They priduced cars and military hardware during World War I. Production of the small manufacturers like SCAT was too limited to have any real impact. FIAT was the largest company proifucing 600 cars a day by the advent iof World war I. The company began producing trucks (1912). During the War they manufactured artillery shells. 【Cavaliere】 FIAT produced most of the Italian military vehicles used during World War I, both trucks and cars. The world-wide automotive industry was still in an early stage, but still played a role in the War, primarily on the Western Front. As the Italians were fighting the Germans and Austrians in the south, who also had small auomotice industruies, this was not the cause of the military failure leading to Caporetto (1917).

Inter-War Era

Italian compnies competed in races to establish their technological competence. Italian automotive companies could not compete in building passenger cars. Rather the compaies which survived ficused on luxury and sports cars. Italian companies remained importangt in car design and technology. 【Carlier】 The competition was over producing the more powerful engines. There was no compny doing what Ford did, getting into the effort to bring down the cost of producvtion.. Over time many of these concerns went out of business or were purchased by FIAT. The Iltalians after World War I produced about 35,000 motor vehicles (1924). The industry peaked af some 55,000 vehicles (1928), but during the Depression and lead up to World War II, production declined to only about 44,000 vehicles (1935). These numbers are a fraction of 1 percent of American production. The Inter-War Era of course was dominated by Mussolini and his Fascist Party. The economic program was the Corporate State. FIAR diominated ge autimobile industry. The comopany had to follow FAscist econiomic directives. Mussolini like Hitler was interested in automobile, perhaps not quite as passonate. He also wanted a low cost car workers could afford. Ho ordered FIAT to build a car that could be sold unfer under 5,000 Lire, an idea that had a propaganda appeal impact. The result was the Fiat 500 (1936). The Lire was not a freely converavke currency. The fficial pegged exchnge rate in 1936 was about 25 L to the U.S. dollar. That would mean about $200 and the real value if the Lire was much lower. This suggests that it was much less than the cost to manufacture the FIat 500. We suspectt that very few were built and sold at that price. Hitler was doing the sane in Germby with the Volkwagen, but the workers who cointrinuted monthly to obtain their VW lost all of their money, not one ordinay citizen got one. The FIAT 500 seems to have achieved some popularity as FIAT continued to use the name for its post-War cars. Alfa Romeo expanded his racing activities after World War I. And its successes made it notable world-wide brand. Mussolini himself was an fervent Alfista. 【Anonymous】 Hitler was more partial to Mercededs.

World War II

The Italian automobile sector had an international reputation, but mostly for luxury and sports cars. Fiat produced most Italian military vehicles used during World War II, most of the cars and a substantial proportion of the trucks. The Italian Army procured cars similar to the German process. Some were built with militarized bodies on civilian chassis. Others like the 1500 were a civilian vehicle with a subdued or camouflage paint application. These modified cars used by the military were called 'Coloniale'-type field cars. The Germans used many of these vehicles, especially after invading Italy (1943). Actuall production was very small in World War II terms. Italy had a much smaller prioduction compared to the countries they went to war with, and not bjust the Unitedv States. (The Soviets did not produce many cars, but they produced substantial numbers of trucks and tanks.) The Japanese had even a smaller automotive industry. This was because few Italian and vurtully no Japanese workers could afford a car. And manufacturers made no major effort to produce a low cost car, until Mussolini ordered FIAT to do so. Given Italian wage levels, this was essentially impossible. And most importantly it affected the ability of Italy to field a modern, well equipped army during World War II. The fact that the Axis powers had such small automotive industries was a major reasin they lost World War I. Despite Goebbels propagabda filmn, the German Army was largely on foot during the War moving in foot with horse-drawn supply carts. The Italian Army was even less motorized. Despite Mussolini escalting war as a matter of core national policy. In an industrial war of movement, these numbers show that Italy despite Mussolini's blustering was not in a position to fight a modern war. Invading Ethioipia and Albania was one thing, fighting a modern army was a very different matter. The Italian World War II soldier is often derided. A large part of the responsibility for the failure of Italian arms was poor leadershipo and a lack of modern equipment. The Italians did build some tanks, but they were not up to World War II standards. Again, they worked in Ethiopia, but against the British in the Western Desert the Italian tanks were were hopeless. Because of the Italian experise with sports cars and engines, they built some impressive aircrft. Some interested the Luftwaffe. Only they did not have the industrial capacity to build very many or the expertise to mass produce them. .

Sources

Anonymous. "Italian cars history," Life in Italy (May 15, 2019).

Carlier, Mathilde. "Car market in Italy - statistics & facts," statistica (2022).

Cavaliere, David. "he history of the Italian automobile," italian tribune.com (March 3, 2018).

Enrietti, Aldo, Aldo Geuna, Consuelo R Nava, and Pier Paolo Patrucco. "The birth and development of the Italian automotive industry (1894–2015) and the Turin car cluster," Industrial and Corporate Change Vol. 31, Issue 1 (January 2022), pp. 161–85.

Created: 7:32 PM 2/19/2022
Last updated: 6:02 PM 6/15/2023