René Panhard and Émile Levassor built their first cars, a series of four identical models, in Paris during1891. Other models followed in rapid succession, giving Panhard & Levassor the claim as first in continuous production, as opposed to the Germans Gottlieb Daimler and Carl Benz, whose early efforts came in fits and starts. With fellow countrymen Peugeot, Serpollet and De Dion, Panhard & Levassor constituted the world's earliest automobile industry, and France gave the name "automobile" to the new vehicle by combining Greek and Latin roots.

An early adherent to the front-engine, rear-drive configuration, Panhard was acknowledged by the name Système Panhard given to the layout, although another important ingredient, shaft-drive, was not universally adopted by the company until 1913. Panhard & Levassor were also pioneers in wheel steering (1896) and tubed radiators (1897). Production of Panhard automobiles grew rapidly, topping 1,000 in 1902 when American automakers were