The fact that Ettore Bugatti started small at first and not directly built racing and sport cars with huge engines, shows his development of the car shown above from 1911. If he had it also produced, then the company Bugatti would probably gone a completely different way. Thus the project comes in the hands of Peugeot and there is fondly called 'Bebe' (baby).

The four-cylinder engine is combined with an innovative two-speed geared transmission. The undercarriage is simple with two leaf-sprung rigid axles, but the car is selling brilliantly because of the relatively low maintenance costs. The Peugeot car factories are working at the capacity limit. The Bebe is model for the later Austin 7 and the again for many reproductions with and without slight modifications.

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