Admittedly, a small car like the Lancia Y10 was not what car fans expected from the brand in 1985.
At the time, Lancia was excelling in motorsport. Memories of the Lancia Stratos, which dominated the rally scene in the 1970s, were still fresh. Lancia, owned by FIAT since 1969, also competed for victories and titles in the World Rally Championship with the Lancia 037 and the Lancia Delta S4. Meanwhile, Hans Heyer celebrated the DRM title in 1980 with the Lancia Beta Monte Carlo. The Lancia LC1 and LC2 sports cars were also capable of winning on good days in the endurance world championship.
And then, Lancia presented a small car!
However, to be fair, the Lancia Y10, presented at the 1985 Geneva Motor Show, broke several conventions of its vehicle class. The Y10 was something the auto industry would only truly invent many years later: a lifestyle city car. Apparently, the decision-makers were aware of the contradiction a small car with the Lancia name posed. Thus, in its home market of Italy, the Y10 was marketed as an Autobianchi, a brand that originated from a collaboration between bicycle manufacturer Bianchi and Pirelli, but had belonged entirely to FIAT since 1968.
Lancia had long stood for innovation, elegance, and a passion for motorsport, especially in Italy. Founded in 1906 by Vincenzo Lancia, the brand repeatedly shaped automotive history with groundbreaking technical innovations. The 1922 Lancia Lambda featured a unibody chassis, a rarity for its time. The lightweight aluminum V6 engine in the 1950 Lancia Aurelia was revolutionary. The Aurelia, designed by Vittorio Jano, also marked the beginning of Lancia's rally success. Moreover, Lancia even maintained a Formula 1 team, although the cars and equipment were later handed over to Ferrari after the tragic death of Alberto Ascari.
Lancia Was Once Owned by a Cement Manufacturer!
Despite the brilliance of its engineers, Lancia was financially struggling in the early 1950s. Its diverse model range could not be produced profitably in the outdated factory. Modernization funds were lacking, and the money that was available went into prestige projects like the Lancia Tower, a 70-meter-high structure completed in 1953, spanning a public road and connecting two separate factory sections. Company head Gianni Lancia, who had led the firm since the early death of his father in 1937, sold his shares to cement magnate Carlo Pesenti in 1955/56.
The Lancia Y10 Turbo was a derivate of the FIAT Panda
The owner of the Italcementi Group brought fresh capital to the company. Under his leadership, the focus shifted to consolidating the business, with expensive motorsport activities temporarily sidelined. However, Lancia redefined luxury with the Antonio Fessia-designed Lancia Flaminia. Pesenti also initiated the development of the smaller Fulvia and Flavia models, even opening a new factory in Chivasso for their production in 1960. However, major success was limited due to the models' extremely high prices. The German newspaper "Die Zeit" described owning a Lancia as an expression of "upper-class status seeking."
FIAT Took Over Lancia in 1969!
Pesenti eventually realized that Lancia was a financial black hole and sought a buyer. Daimler-Benz reportedly showed interest. BMW, itself a takeover target a decade earlier, also engaged in concrete acquisition talks. However, by the mid-1960s, Pesenti had sold over a third of Lancia shares to the Vatican. The church's financial managers were unwilling to write off their investments, and they felt BMW's offer was insufficient. The deal fell through, and Lancia continued to accumulate debt. Ultimately, an Italian solution emerged: Giovanni Agnelli's FIAT acquired Lancia in 1969.
As a first measure, FIAT reduced the prices of all Lancia models to boost sales. This marked the start of a contrasting era for Lancia. Iconic design, technical innovations, and motorsport comebacks were balanced against the gradual integration into the FIAT Group. The Lancia Beta combined advanced technology with luxury comfort in the mid-size segment. The wedge-shaped Lancia Stratos drew attention and delivered rally success, winning the World Rally Championship three times, powered by a Ferrari V6 engine and designed by Bertone.
And Then Came the Lancia Y10!
To capitalize on the attention generated by these motorsport successes, FIAT introduced the Lancia Delta compact car in 1978. A Lancia this small had never existed before, as the brand had traditionally focused on the mid-size segment. Still, the Y10 was a surprise, as FIAT already covered this market with the Panda and Uno models. Additionally, the Autobianchi A112, marketed as a Lancia outside Italy since 1977, was already eight years old and struggled to establish the Lancia name among small car fans.
The Y10 was seen as the successor to the A112 but offered more than just a compact city car. It embodied a new philosophy for small vehicles, starting with its harmonious body design. It's hard to believe that beneath the sheet metal, the Y10 shared technology with the FIAT Panda. Since the Panda's boxy design already filled the niche of the "quirky box," Lancia's in-house "Centro Stile" created a futuristic contrast for the Y10, breaking away from the angular design language still seen in the Delta.
Inside, the Lancia Y10 Was Also Ahead of Its Time!
A key design feature was the usually matte black rear hatch, emphasizing the aerodynamically favorable Kamm tail. Equally remarkable was the high-quality interior available for the Y10. Buyers could even order premium Alcantara-covered seats in higher trims, setting new standards and making the Y10 feel like a "mini luxury car."
The Lancia Y10 Turbo was a real boy-racer
The focus under the hood was efficiency. The Y10 debuted the FIRE engine, later used in the Panda. Producing 45 hp, it reached a top speed of 145 km/h while consuming only around seven liters of fuel per 100 kilometers in city traffic. For those craving more power, an 85 hp turbocharged version was also available, capable of reaching up to 180 km/h, blending Lancia's spirit of driving pleasure with style.
The Lancia Y10 Was Ahead of Its Time!
The Lancia (or Autobianchi) Y10 remained on the market until 1995, when it was succeeded by the Lancia Y. With this transition, FIAT also retired the Autobianchi name in Italy. Yet none of its successors ever matched the first Y10. It was ahead of its time, blending individuality with everyday practicality and proving that a small car could still offer charm and sophistication—an idea now widely imitated across the automotive world.
Picture credits: Stellantis Media