After the successful introduction of the Lambda, development was started for a bigger car with a (narrow) V8 engine. This project gained momentum when Lancia was introduced to an American businessman who came with a proposal to build a new factory in the United States. Finance would be American and Lancia would design a car specially for the American market. When he travelled to New-York with the prototypes however late in 1927, the whole plan turned out to be a fraud, set up to sell shares and cash in on the Lancia name.
This design was reworked for the European market but because of its American background it is a big, heavy car aimed at the top end of the market.

The Dilambda has the sliding-pillar front suspension and a modern but conventional chassis so coachbuilders can perform their art and it was most often fitted with stylish and luxurious bodywork. In its class the Dilambda was a fine car to drive but the 4 litre V8 with an overhead camshaft was considered a little noisy when compared to the competition.