[1] After seeing Panhard's Daimler-designed V-twin engine demonstrated at the Paris Exposition of 1889 and inquiring into the engine's weight and power, Armand Peugeot expressed his interest in a lightweight motor vehicle powered by the engine.

Daimler worked with Wilhelm Maybach to develop the vehicle.

[6] The tubular steel frame resembled two bicycles joined side by side and was made by bicycle manufacturer Neckarsulmer Stahlfabriken, which would later become part of NSU Motorenwerke.

[1][6] Water, to cool the engine, was run through the tubular frame.

[4][8] Peugeot began building cars based on the Stahlradwagen design by 1890.