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The company was formed after de Dion in 1881 saw a toy locomotive in a store window and asked the toymakers to build another. Engineers Bouton and Trépardoux had been making a starvation living on scientific toys at a shop in the Passage de Léon, close to the "rue de la Chapelle" in Paris. Trépardoux had long dreamed of building a steam car, but neither could afford it. De Dion, already inspired by steam (though in the form of rail locomotives) and with plenty of money, agreed, and De Dion, Bouton et Trépardoux was formed in Paris in 1883. This became the De Dion-Bouton automobile company, the world's largest automobile manufacturer for a time, becoming well known for their quality, reliability, and durability.

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