Abarth was founded by a man, of Australian-Italian descent, named Carlo Abarth together with Armando Scagliarini back in 1949 in the town of Turin. Ever since Abarth was acquired by Fiat, the Abarth logo has been associated with quality and prestigious Italian racing Cars.

Carlo sold Abarth to Fiat on 31 July 1971.
On 1 February 2007 Abarth was re-established as an independent unit with the launch of the current company, Abarth & C. S.p.a.
In 2015, Abarth's parent company was renamed FCA Italy S.p.A., reflecting the incorporation of Fiat S.p.A. into Fiat Chrysler Automobiles that took place in the previous months.
In 2017, Abarth collaborated with Yamaha to produce a limited-edition motorcycle, the "Sport Heritage café racer special", named the XSR900 Abarth.