Lancia & C. Fabbrica Automobili was founded on 27 November 1906 in Turin by Fiat racing drivers, Vincenzo Lancia and his friend, Claudio Fogolin. The first car manufactured by Lancia was the "Tipo 51" or "12 HP" (later called "Alfa"), which remained in production from 1907 to 1908. It had a small four-cylinder engine with a power output of 28 PS (21 kW; 28 hp).[7]
In 1910, Lancia components were exported to the United States where they were assembled and sold as SGVs by the SGV Company.] In 1915, Lancia also manufactured its first truck, the Jota, that continued as a dedicated series. In 1937, Vincenzo died of a heart attack. His wife, Adele Miglietti Lancia, and his son, Gianni Lancia, took over control of the company. They persuaded Vittorio Jano to join as an engineer. Jano had already made a name for himself by designing various Alfa Romeo models, including some of its most successful race cars ever such as the 6C, P2 and P3.
Lancia is renowned in the automotive world for introducing cars with numerous innovations. These include the Theta of 1913, which was the first European production car to feature a complete electrical system as standard equipment. Lancia's first car adopting a monocoque chassis, the Lambda produced from 1922 to 1931, featured independent front suspension that incorporated the spring and hydraulic damper into a single unit (a feature that would be employed in subsequent Lancias, up to the Appia that was replaced in 1963). In 1948, the first 5-speed gearbox was fitted to a production car (Series 3 Ardea). Lancia premiered the first full-production V6 engine, in the 1950 Aurelia, after earlier industry-leading experiments with V8 and V12 engine configurations. It was also the first manufacturer to produce a V4 engine Other innovations involved the use of independent suspension in production cars (in an era where live axles were common practice for both the front and rear axles of a car), and rear transaxles, which were first fitted to the Aurelia and Flaminia range.
Lancia Aurelia
This drive for innovation, constant quest for excellence, fixation of quality, complex construction processes and antiquated production machinery meant that all cars essentially had to be hand-made. With little commonality between the various models, the cost of production continued to rise, while less demand eventually affected Lancia's viability
During the 1980s, the company cooperated with Saab Automobile, with the Lancia Delta being sold as the Saab 600 in Sweden. The 1985 Lancia Thema also shared a platform with the Saab 9000, Fiat Croma and the Alfa Romeo 164. During the 1990s, all models were closely related to other Fiat models.
Starting from 1 February 2007, Fiat's automotive operations were reorganised. Fiat Auto became Fiat Group Automobiles S.p.A., Fiat S.p.A.'s branch handling mainstream automotive production. Simultaneously the current company, Lancia Automobiles S.p.A., was created from the pre-existing brand, and controlled 100% by FCA. In 2011, Lancia moved in another direction and added new models manufactured by Chrysler and sold under the Lancia badge in many European markets, such as the 300 (named Thema), 200 Convertible (as Flavia) and Voyager. Conversely, Lancia-built models began to be sold in right-hand drive markets under the Chrysler badge.
In 2015 Lancia's parent company Fiat Group Automobiles S.p.A. became FCA Italy S.p.A., reflecting the earlier incorporation of Fiat S.p.A. into Fiat Chrysler Automobiles.
After 2015, all models produced by Chrysler were discontinued in the European market. Since then, the Lancia brand has remained alive, only by continuing to manufacture and sell the Ypsilon exclusively in the Italian market.