The F40 was the last car created by founder Enzo Ferrari and was made to commemorate Ferrari's 40th anniversary. The F40LM was a more competitive version of this highly competitive machine, which was made to be able to compete in races, and the Competizione is its customer model.

Compared to the F40, it was given a front cowl with cooling air ducts, large round 4-lamp headlights, a large front spoiler, and an adjustable rear wing, improving the cooling and aerodynamic performance of a racing car. Improvements were made with motorsports in mind, such as the installation of a suspension modified for racing, thorough weight reduction of the interior and exterior, and standardization of safety equipment such as a 4-point harness and driver's side bar.

The engine is a 2.9-liter V8 twin turbo, and the basic package is the same as the F40, but the performance has been significantly improved to 700ps (Ferrari's official figure), which is about 1.5 times the normal 478ps, by making the turbocharger and intercooler larger, increasing the boost pressure, and reviewing the engine management. Fewer than 20 units were produced, including the LM for racing, making this a very valuable collector's item.