The company 'Dietrich and Cie' in Luneville had a reputation as a manufacturer of railway materials. In 1896, however, the board of directors decided to start building cars. The first three-wheeler was designed by Amedee Bollee, the older brother of Leon Bollee. Shortly afterwards, the young Ettore Bugatti was commissioned to design a few models for the new make.
The small and large cars designed by Bugatti were driven by two, four and six-cylinder engines. In 1909, customers were able to choose from no less than nine different models. The Dietrich company invested a great deal in racing. The racing cars had enormous engines and were specially designed for the purpose. In 1905, the car's name was changed to Lorraine-Dietrich. From that time onwards the cross of Lotharingen was mounted on the massive radiator. The company never produced small cars. The model with the smallest engine was the A4 10/12 CV type dating from 1923. The factory also produced V12 engines, for the first time in 1919 and later again in 1931.
However, neither model progressed further than prototype stage. Like everyone else, during the crisis years Lorraine-Dietrich had to endure difficult times. It was very difficult to sell the expensive cars. In 1934, it was decided to halt production. The concern focused once again on the construction of railway materials and tank and aircraft engines.