The story
The company was created 1942 by the Brazilian state as part of the Estado Novo agenda of President Getúlio Vargas. It was one of several business launched by the state during this period (including also Companhia Siderúrgica Nacional launched in 1941 and CHESF in the later 1940s) to kick start an industrial sector in Brazil. Initially the company produced American Curtiss-Wright aircraft engines under license along with ammunition, bicycles, spindles and refrigerators.
After the Second World War it decided to diversify its production. The government was keen to launch a vehicle manufacturing industry. In 1949, an agreement was reached with the Italian manufacturer Isotta Fraschini, whereby FNM would produce the Milanese company's heavy trucks under license. Isotta Fraschini commercial vehicles enjoyed an excellent reputation at this time, but the Italian company was already economically troubled, although its formal bankruptcy would be put off till the end of 1951.
From Wikipedia’s article on Fábrica Nacional de Motores, shared under CC BY-SA 4.0.4