In 1905 the grandsons of the founder, Vittorio and Pietro Diatto, believed that motor-vehicle production represented the future for the 'carriage market'. On 12 April 1905, they founded the Società Diatto-A. Clement in partnership with the French company Clément-Bayard, owned by Adolphe Clément-Bayard of Paris. Diatto-Clément had a workforce of 500 (Note: Fiat had 776) and produced cars with 4 and 6 cylinder engines.