Montesa was formed in 1944 by Pedro Permanyer and Francisco Xavier "Paco" Bultó. Bultó designed a new 125cc roadster, which was tested in many of the trail-type rallies and semi-enduros that were popular in Spain at the time.This model went on to enter the 1951 International Six Days Enduro. By 1956, these Montesa 125s were very competitive and took second, third and fourth places in the Ultra-Lightweight race at the Isle of Man TT. A slump in the Spanish economy had forced Permanyer to cut back on the company's racing activities. Bultó insisted that they stay the course. In May 1958, chief designer Bultó left, to form a competitive firm, Bultaco. Fortunately for both, Spain's economy began to improve. In the decade following, Montesa had unprecedented growth around the world and one has to remember that unlike Bultaco, Montesa only sent a small percentage of its production to the States, concentrating mostly on the European market.