Fiat, an acronym for Fabbrica Italiana Automobili Torino, is an Italian automobile and engine manufacturing, financial and industrial group based in Turin in the Piedmont region.

It owns and operates brands like Lancia, Alfa Romeo, Abarth, Maserati and Ferrari in Italy. General Motors became a Fiat partner in 2000.

Fiat has also manufactured tanks and aircraft. As of 2009, Fiat is Italy’s largest and the world's sixth largest carmaker.

It was founded in 1899 by Giovanni Agnelli along with several investors. Agnelli led the company until his death in 1945.

Fiat’s first car was the 3 ½ CV followed by its first truck in 1903. In 1908, the first Fiat was exported to the US as well as the first Fiat aircraft engine produced. Fiat was the largest automotive company in Italy.

Fiat-based cars are made around the world, with the largest number produced outside Italy.

It has factories in Argentina and Poland. The group's activities were initially focused on the industrial production of cars, industrial and agricultural vehicles.

iat now wishes to focus on expanding its markets into the third-world countries as per the desires of its former chairman Paolo Fresco.

It starts with an advantage in these markets due to it being a specialist of small cars.

However, cars sold in third-world countries tend to be much simpler than those sold elsewhere, and as such require less money to develop.

In April and May 2009, the possibility of a take over of GM Europe, a subsidiary of General Motors, was being discussed between the two companies.

If the deal becomes successful, it will make Fiat the second largest automobile manufacturer in the world, behind Toyota.

The flagship of Fiat’s current range is the 500. There is also the Grande Punto which has gained popularity. Besides, Fiat also produces a range of convenient cars like the Doblo, the Multipla, the Panda, the Bravo, the Sedici and the Qubo.

Fiat is committed to reach the lowest weighted average carbon dioxide level by 2012, a commitment made by chief executive Sergio Marchionne.

The measure means that Fiat on average would have (measured by sales) the lowest carbon dioxide emissions in Europe.

Fiat’s new 500 model is the first car in Europe which fully complies (throughout the entire engine range) with the Euro 5 emissions regulations (Euro 5 emissions regulations deal more with dirty pollutants like hydrocarbons).

Fiat has previously developed a hydrogen fuel-cell powered car based on the Seicento although it believes that this technology remains in the embryo stage.

As Fiat largely manufactures fuel-efficient small engine cars, it hasn’t needed to take drastic measures to reduce emissions in its vehicles thus no grand marketing campaigns hailing its own efforts in this area are necessary.

As mentioned earlier in the Alfa Romeo section, Fiat developed a ‘Uniair’ petrol engine which claims to cut carbon dioxide emissions by 40 per cent, nitrogen oxide emissions by 50 per cent and increases pulling power in the engine.