There was also a failed 1950s dalliance in top level motor racing, the major financial impact of which was still being felt ten years later. Add in burgeoning manufacturing costs, and Lancia gradually turned into a financial millstone, weighing heavily on its then still independent owners.

Lancia has lain dormant for decades, its extensive engineering and rally racing heritage languishing under the expansive Stellantis empire. Since 2017, the brand has only been selling cars in its home country of Italy, with the aging Fiat 500-based Ypsilon keeping Lancia afloat since 2015.

In 2015 Lancia's parent company Fiat Group Automobiles S.p.A. became FCA Italy S.p.A., reflecting the earlier incorporation of Fiat S.p.A. into Fiat Chrysler Automobiles.

Lancia lacked a production engine large enough to base a racing engine on, leaving the company to turn to outside sources. Since Lancia were owned by the Fiat Group, they were able to seek the assistance of fellow Fiat company Ferrari.