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The via Ormea years, 1906–1910

Lancia e C. S.n.c. (società in nome collettivo, Italian legal form of general partnership) was founded on 29 November 1906 in Turin by two Fiat racing drivers, Vincenzo Lancia (1881–1937) and Claudio Fogolin (1872–1945).^[8] The company rented a workshop in via (street) Ormea, formerly occupied by Itala; in the following two years it would gradually be expanded to comprise an entire block. The first motor car, the "Tipo 51" or "12 HP" (later called "Alfa"), was built in 1907 and displayed in 1908 at the Turin Motor Show and produced up to 1908. It had a 2,543 cc four-cylinder engine with a power output of 28 hp.^[9] Three more models were built in the early via Ormea years: the 1908 6-cylinder 18HP (Dialfa), the 1909 4-cylinder, 3,120 cc 15/20HP (Beta) and the 1910 4-cylinder, 3,460 cc 20HP (Gamma). These early cars were positioned in the medium-high market segments, inbetween the two main categories of early Italian car manufacturing: the large displacement luxury cars and the diminutive voiturettes.

Early via Monginevro years, 1911–1914

On 14 January 1911 all Lancia manufacturing activities moved from via Ormea to the former factory of a defunct car manufacturer, Fides,^[a] located in via Monginevro, in the Borgo San Paolo district on the western outskirts of Turin. By 1914 Lancia employed 469 workers and finally a foundry had been built.^[10] Four models were built in the initial via Monginevro years, all with inline-four engines: the 1911 20-30HP (Delta), its evolution the 20-30HP (Epsilon), the 50HP (Eta), and the small 12HP (Zeta)—which proved unsuccessful, and was made only in a few dozen examples. Lancia also made its first military light truck chassis, the 1Z, which was supplied to the Royal Italian Army for use in Lybia during the Italo-Turkish War and continued to be built up to 1916. The first model truly met with commercial success was the Lancia 35 HP (Theta): between 1913 and 1918 there were 1,696 Thetas made—more than three times as much as its predecessor, the Eta.^[11] It was equipped with a 4,940 cc inline-four engine and a chassis based on these of the 1Z light truck; it was also the first European production car to feature a complete electrical system as standard equipment.^[12]

Wartime production, 1915–1918

At the outbreak of the First World War Lancia's was declared “Stabilimento Ausiliare di Guerra”, "Auxiliary War Factory”; production was diverted to the army's needs.^[13] Unlike other car manufacturers like Alfa Romeo or Isotta Fraschini, which diversified their activities entering the blooming arms and aircraft engines industry, Lancia's wartime production remained focused on the automotive sector. Lancia's own aero engines studies didn't progress past the prototype stage, but arguably provided precious experience which aided in the development of the postwar automotive V engines.^[14] In 1915 Lancia manufactured its first heavy truck, the Jota and short-wheelbase Djota, powered by the 4,940 cc engine from the Theta; the Jota proved fortunate and was made in a series of models without radical changes up to 1935. An armoured car was also built in cooperation with Ansaldo, on a strengthened Theta/1Z chassis again using the Theta engine; together with an improved type introduced in 1918, the Lancia 1ZM, it was the Army's main armoured vehicle throughout the war. Lancia's total wartime production amounted to around 3000 vehicles, the bulk of which were Jota trucks.^[15] During August 1918 Fogolin, Vincenzo Lancia's partner, retired from the company; the company's capital was split between the two co-founders.^[16]

Postwar, 1919–1922

Reconversion to peacetime production was easier for Lancia than for most other Italian manufacturers, burdened by cancelled orders and excessive production capacity. Immediately after the war demand for motor cars soared, especially for luxury types. At the 1919 Paris Motor Show Lancia displayed a new chassis with a powerful V12 engine, with a narrow 20° angle between the cylinder banks; despite being intended for production, it remained a single prototype.^[17] Lancia's first production narrow vee engine debuted later, in 1922, on the flagship Lancia Trikappa, fitted with a 4,594 cc 22° V8. Nevertheless the majority of postwar production remained based on developments of the proven 4,940 cc four-cylinder, which powered the 1919 Kappa (evolved from the Theta), its 1921 Dikappa sport variant, as well as the Trjota and Tetrajota trucks from 1921. With the Kappa Lancia adopted its Greek alphabet letter naming system, and all of the earlier models where renamed posthumously.

In Autumn 1922 at the Paris Motor Show debuted a pivotal car for Lancia, the Lambda.^[18] Its innovative design set the template for the Lancias of the following two decades: it featured a compact narrow vee, 2,120 cc 12° V4 engine, sliding pillar independent front suspension that incorporated the spring and hydraulic damper into a single unit, and most importantly unibody construction. The Lambda immediately became Lancia's bestseller, and between 1922 and 1931 around 13,000 were built in nine series.^[19]

In 1928 a new flagship was launched, the 4.0-litre V8 Dilambda, which went back to a separate frame made of stamped steel coachbuilders, as was customary for luxury cars at the time. For the same reason body on frame construction was chosen for the 1931 Lancia Astura and Artena. The two cars were closely related but set in different classes by their engines—a 2,605 cc (later 2,972 cc) V8 the former and a 1,924 cc V4 the latter. Development of the unitary body continued with the 1933 1,196 cc V4 Augusta, Lancia's luxury entry in the small car segment.

By the mid 1930s Lancia needed to expand its plants. A new factory was set up in 1937, located near Bozen, km from Turin. This seemigly irrational choiche was from pressure from the fascist government and institutions, who sought to industrialize and italianize the German-speaking region, only annexed in after the war.

Second Italo-Ethiopian War

Lancia Aprilia four wheel independent suspension, a wind tunnel-studied aerodynamic fastback body, and an aluminium cylinder block and oil pan, and hemispherical combustion chambers

In 1937, Vincenzo died of a heart attack and both 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.^[12] Lancia's first car adopting a monocoque chassis – the Lambda produced from 1922 to 1931 - featured 'Sliding Pillar' independent front suspension that incorporated the spring and hydraulic damper into a single unit (a feature that would be employed in subsequent Lancia's, up to the Appia that was replaced in 1963). 1948 saw the first 5 speed gearbox to be fitted to a production car (Series 3 Ardea). Lancia premiered the first full-production V6 engine, in the 1950 Aurelia,^[20] 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 where 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. This drive for innovation, constant quest for excellence, fixation of quality, complex construction processes and antiqued 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 increase extensively, while demand did not eventually affecting Lancia's viability.^{[citation needed]}

Gianni Lancia, a graduate engineer was president of Lancia from 1947 to 1955. In 1956 the Pesenti family took over control of Lancia with Carlo Pesenti (1907–1984) in charge.

Alfa Lancia

In December 1986 Lancia and Alfa Romeo, just acquired by Fiat, were grouped into a single subsidiary, in order restructure and rationalize Fiat's two premium car manufacturers. This new entity, Alfa Lancia Industriale, was entirely controlled by Fiat Auto S.p.A.. First incorporated in Turin, its headquarters were almost immediately moved to Arese, Milan; it became operational on 1 January 1987. After five years, during 1992, Alfa Lancia Industriale was merged back into Fiat Auto, and Alfa Romeo and Lancia remained simple marques.

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