For many carmakers in the early 1900s, competition was an extraordinary, if not obligatory, means of making a name for themselves and promoting their models, with a race victory quickly establishing a reputation.

Nevertheless, Fiat finished ahead of Lorraine-Dietrich, Panhard, and Brasier, and with this result, the Italian manufacturer not only gained recognition but also assumed the role of a serious competitor.

However, Fiat's real competitive heyday came in 1907, when Felice Nazzaro won the ACF GP, the Targa Florio, and the Kaiserpreis, the three most important races of the day.

[3][4] Surprisingly, it was at the Indianapolis 500 that Fiat made its return to competition, and it wasn't until 1921 that an entirely new car was designed specifically for the European Grands Prix, which had to comply with the regulations laid down by the International Association of Automobile Clubs.

The three Fiat drivers then led the race for almost forty laps - during which most of the competing cars fell victim to various technical problems[5][10] - before Biago himself fell victim, on the fifty-third lap, to an accident that was to cost him his life: the rear axle of his 804 broke in a straight and lost a wheel, and the car hit a tree at full speed.

[10] Despite Biago's death, Fiat once again fielded three 804 cars - with chassis reworked to avoid the incidents that occurred at the ACF GP - at the start of the Gran Premio d'Italia 1922 (Italian Grand Prix), held on September 10 on the brand-new Monza circuit.

Unexpectedly, Fiat's domination of the ACF Grand Prix led to a large number of no-shows for the Italian GP: Ballot, Benz, Bianchi, Bugatti, Mercedes, Rolland-Pillain and Sunbeam announced their withdrawal from the race.

[13] Feeling his hands were tied, Cappa decided to leave his post at the head of the Special Studies Section and devote himself exclusively to touring cars, hoping to combine elegant design with high technical standards; the Fiat 519 and 509 were born of this desire.

For his part, Vincenzo Bertarione, supervisor of the 402/403/404 engines, had left Fiat at the end of 1922 after refusing to accept a pay rise requested following Grand Prix victories.