On 21 September 1931, the National Engineering Works, the largest pre-war automotive manufacturing enterprise, signed a license agreement with the Italian Fabbrica Italiana Automobili Torino company. This resulted in the establishment of the Polski Fiat joint-stock company, within the framework of which the Polish party, in exchange for know-how, committed to creating a network of service stations and repair workshops for Fiat and Polski Fiat cars.
Between 1935-39, production of the Polski Fiat 508 was launched under a license agreement, and in 1936 it was given the commercial name “Junak”. Even though the advertising slogan for the new car read “the most economical of the comfortable ones, the most comfortable of the economical ones”, at a price of 7200 złotys the vehicle was a luxury item, available only to a few.
The car has a body-on-frame design that is typical of the 1930s. An in-line, four-cylinder, flathead petrol engine is located at the front of the vehicle and is connected to a four-gear transmission that drives the rear axle via a propeller shaft. Both axles are rigid and suspended on leaf springs, with hydraulic arm shock absorbers damping the vibrations. The vehicle body is made of steel. An interesting solution can be found in the central part of the roof which is made of dermatoid and acts to damp vibration and stress. The Polski Fiat 508 III was based on the design of its Italian counterpart, the Fiat 508 Balilla, but it featured modifications introduced by Polish engineers to adapt the vehicle to the difficult road conditions and increase its strength. It was the first car to be mass-produced in Poland, and it became the basis for developing derivative versions for delivery and military applications.
The purchase of the licence contributed to a significant improvement in the level of advancement of the Polish automotive industry. Contrary to the popular view, the Polski Fiat was not the most popular car brand before the war in Poland: Chevrolets, for example, were bought more frequently. Up until September 1939, around 3500 Polski Fiat 508 III cars were manufactured, as well as 1000 frames as parts for bodies, and 2500 derivative variants.