Fiat's Grand Prix car for 1907 was meant to end French dominance once and for all. That year a new formula was introduced based on fuel consumption (a maximum of 30 liters per 100 km/9.42 mpg) without any weight or engine capacity limits. Fiat introduced a car designed by Giovanni Enrico and under the supervision of Carlo Cavalli which was powered by a four cylinder 16,286cc engine. The engine producing 130 bhp weighed more than 2000lbs! Each piston weighed almost ten pounds. Other features included hemi-spherical combustion chambers, centrally placed spark plugs and a Simms-Bosch magneto ignition. The driver changed gears via a multi-plate clutch and had as his disposal four speads plus reverse through a chained transmission. To stop the car he had a foot brake on the differential gear and a hand brake on the rea wheels.

For Fiat it was a very successful season with the race at the 2nd Targa Florio in Sicily. Most races were run under different rules requiring a dedicated car. The circuit, if it could be called that covered 92 miles through such wild country that more than one driver carried a pistol to ward off wolves and/or bandits. The Fiat team scored a 1-2 with Felice Nazzaro leading Vincenzo Lancia. The most important race on the calendar was the French Grand Prix at Dieppe. Entering a team of Vincenzo Lancia, Felice Nazzaro and Louis Wagner to drive their new 130HP monster, it was Nazzaro who set fastest lap as well as coming home first at an average speed of 113.612 km/h. The car had proven its worth though disaster was narrowingly averted with Nazzaro finishing with only half a lap of fuel left in his tank. The successful season was capped by another Fiat victory at the Kaiserpreis.