Agnelli was educated at Pinerolo Cavalry Academy, and studied law at the University of Turin, although he never practiced law. He joined a tank regiment in June 1940 when Italy entered World War II on the side of the Axis powers. He fought on the Eastern Front, being wounded twice. He also served in a Fiat-built armoured-car division in North Africa, where he was shot in the arm by a German officer during a bar fight over a woman. After Italy surrendered, due to his fluency in English, Agnelli became a liaison officer with the occupying American troops. His grandfather, who had manufactured vehicles for the Axis powers during the war, was forced to retire from Fiat, but named Valletta to be his successor. Gianni's grandfather died, leaving Gianni head of the family but Valletta running the company. Fiat then began producing Italy's first inexpensive mass-produced car.