The first factory building of A. L. F. A. was in the first place property of Società Anonima Italiana Darracq (SAID), founded in 1906 by the French automobile firm of Alexandre Darracq, with some Italian investors. One of them, Cavaliere Ugo Stella, an aristocrat from Milan, became chairman of the SAID in 1909. The firm's initial location was in Naples, but even before the construction of the planned factory had started, Darracq decided late in 1906 that Milan would be more suitable and accordingly a tract of land was acquired in the Milan suburb of Portello, where a new factory of 6,700 square metres (8,000 sq yd) was constructed. In late 1909, the Italian Darracq cars were selling slowly and the company was wound up. Ugo Stella, with the other Italian co-investors, founded a new company named A. L. F. A. (Anonima Lombarda Fabbrica Automobili), buying the assets of Italian Darracq that was up to dissolution. The first car produced by the company was the 1910 24 HP, designed by Giuseppe Merosi, hired in 1909 for designing new cars more suited to the Italian market. Merosi would go on to design a series of new A. L. F. A. cars, with more powerful engines such as the 40–60 HP. A. L. F. A. ventured into motor racing, with drivers Franchini and Ronzoni competing in the 1911 Targa Florio with two 24-hp models. In 1914, an advanced Grand Prix car was designed and built, the GP1914, with a four-cylinder engine, double overhead camshafts, four valves per cylinder, and twin ignition. However, the onset of the First World War halted automobile production at A. L. F. A. for three years.
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