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IVECO was incorporated on 1 January 1975, with the merger of five different brands: FIAT Veicoli Industriali (with headquarters in Turin), OM (Brescia, Italy), Lancia Veicoli Speciali (Italy), Unic (France), and Magirus-Deutz (Germany).

Following the merger, the newly founded IVECO began rationalizing its product range, manufacturing plants, and sales network, while keeping the original brands. From 1975 to 1979, the IVECO range included 200 basic models and 600 versions spanning from 2.7 tons of GVW for a light vehicle to over 40 tons for heavy vehicles, as well as buses and engines. In 1977, the light- to medium-weight IVECO Zeta range was introduced, replacing the 20-year-old OM Lupetto. Integrating the FIAT-OM range with the Unic and Magirus lineups was completed by 1980. IVECO moved in to work on increasing productivity and engine development. In 1978, IVECO launched the first product in the range of IVECO-branded light vehicles, the Daily.In 1980, IVECO built a turbo diesel engine for heavy industrial vehicles.In this decade the corporate strategy was heavily oriented towards brand promotion and led to the sponsorship of sports events, such as the 1980 Olympic Games in Moscow, the Davis Cup in 1982, multiple championship boxing matches, the Jacques Cousteau expeditions in the Amazon basin in 1983 and the Raid Pigafetta, during which the IVECO-FIAT 75 PC 4x4 was first to make a full circle of the globe. Two new divisions were also formed: bus diesel engines and firefighting vehicles.

In 1984, IVECO launched the TurboStar, a heavy on-road vehicle that became a best-seller in Italy and also successful in the European market, selling a total of 50,000 in seven years.