He grew up in the company of actors, musicians and government officials, developing relationships with leaders such as Pope John XXIII and Benito Mussolini.

[1][2][3] Although Lago was a founding member (one of the first 50[2]) of the Italian National Fascist Party, he later became outspokenly critical of fascism, which led to a violent dispute with Benito Mussolini, necessitating his subsequent fleeing to France.

His three pronged rescue plan for Talbot involved reducing expenses; building light sporting cars and using racing for development and publicity.

[1][2] When, at the end of 1934, Automobiles Talbot S.A. was forced into receivership Lago managed to convert his rights to export Wilson gearboxes into an option to purchase the factory and its plant and machinery at Suresnes.

[6] Walter Becchia, now best known for designing the Citroen 2CV's flat twin engine during the Second World War's German Occupation, moved from Fiat to S T D Motors' Sunbeam racing in 1923.

The following weekend the same cars and ladies were presented to the French motoring industry at the Prince of Wales hotel, followed by another concours sponsored by a Paris newspaper.

Sales were slow due to French recession and lack of racing success so Lago found a new publicity niche, covering 100 miles in one hour at the Autodrome de Linas-Montlhéry.

[1] Capitalising on the company's success in sportscar racing, Lago announced plans to build a 3-litre V16-engined car for the 1938 Grand Prix season.

He showed the blueprints to the Comité de la Souscription Nationale pour le Fonds de Course (a government body that used public money to try to achieve success in motor racing) and received a 600,000-franc subsidy (approx Euro 300,000 as of 2012), but the V16 never appeared, and it was believed that he used the money to build a factory for Pratt & Whitney aircraft engines.