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In the early twenties, Fiat was a dominant force in Grand Prix racing.

For the new 2-liter Grand Prix racing in 1922, the Fiat 804 was specifically designed. Most of the components and chassis details were borrowed from an earlier 3-litre car. It raced briefly in 1921.

During the two Grand Prix events that were held for the 1922 season, Fiat 804s showed their superiority. Nazzaro took first place at the Frech GP while Bordino was the first to cross the finish line at the Italien GP.

In 1923, Fiat made drastic changes to their engine which, most importantly, would include a supercharger. This raised the stakes in Grand Prix racing with Fiat producing 130 hp from its Type 405 engine.

With their increased power, Fiat again ruled Grand Prix in 1923. In doing so, Fiat also was the first brand to win a Grand Prix race using forced induction.

The following year, in 1924, Fiat dropped out of Grand Prix racing. After its success, the 804 remained an influence on future designs, especially the 1924 Sunbeam and 1924 Alfa Romeo P2. Indeed, the 804 made its mark and started a trend of supercharged cars which would last until the forties.