The Fiat Company was founded in 1899 by Giovanni Agnelli, an ex-cavalry officer and several businessmen from the city of Turin in Italy, called Fabbrica Italiana di Automobili Torino (FIAT). In 1906, Fiat was incorporated as Societa Anonima Fabbricca Italiana di Automobili. By 1908, it had manufactured its first aircraft engine and, by 1915, its first trucks for freight haulage.

The first tractor was being developed by 1910, and was actively encouraged by the Italian government which was keen to see a home-grown tractor. However, the project was hindered by the First World War, and it was eight years before a prototype could be shown to the public. After trials, the 702, the ‘earth machine’, was produced in 1919.

It featured a four-cylinder petrol-kerosene engine of about 40hp with