While the FA2 was entered on one occasion in 1980 by the Italian privateer Marco Rocca, Osella Squadra Corse appeared in the world of Grand Prix racing with its first Formula One machine, the FA1. The car was designed by Giorgio Stirano. Powered by Ford Cosworth DFV, it was overweight and aerodynamically inefficient. The car was presented in a blue and white livery with large Denim branding on the sidepods. Many components were manufactured in-house which meant that they were cheap to produce but not always state-of-the-art. The driver was again Eddie Cheever who was able to finish just one race in whole season. Frequently, he had to suffer from the massive unreliability of his car. In the following seasons, the basic design was changed several times.

In the early years, most of the work was done by interim designers like Giorgio Valentini or Tony Southgate, but frequently Enzo Osella himself also worked on the cars. Most of these attempts brought no improvement as high-tech solutions could not be financed. Jean-Pierre Jarier finished fourth at Imola in 1982 (where only 14 cars started) and scored the first Championship points for the young team in a car that was by now dubbed Osella FA1C.

Despite this result, neither the financial nor the technical situation improved. Few sponsors were attracted by the tiny Italian team. Denim only stayed for the first two seasons, Kelemata was no more reliable, and others like Landis & Gyr vanished as quickly as they had come. Most of the other sponsors were small or mid-size companies from Turin or the region of Piemont.