This group had managed to convince Robert Peugeot, whose firm Lion-Peugeot had, in 1910, merged with institutions Peugeot of Audincourt, and this new leader of business, engage in the study and the financing of project race car, modern, for the Grand Prix of the Automobile Club de France (ACF) and the Coupe de l'Auto of 1912.
Ernest Henry, who was then 27 years old, started from a drawing board and a blank page in the racing department, working in secret in Suresnes (in Rossel's former factory), with a budget allocated by the Peugeot factory Through skill and ingenuity Ernest Henry would materialize innovative ideas and sometimes a little iconoclastic team.
Peugeot L76 and L3 emerged as winners of the 1912 French Grand Prix in Dieppe, the Mont Ventoux Hill Climb (the record), the Coupe de l'Auto, Circuit of Ardennes, the meeting of Boulogne,[which?]
Working in concert with the Peugeot Museum, engineer Jean Boulicot built a replica of the 1914 500M over 10 years, with the finished machine debuting at the Coupe Motos Legende event in 2010.
On May 30 Jules Goux driving a L76 (with engine displacement reduced to 7.3 L to respect the rules of the race), won the 1913 Indianapolis 500, 804.5 km to 122.155 km/h average.
Georges Boillot lead the Mercedes armada with his 4.5-liter engine until the last lap of the historic 1914 French Grand Prix run July 4, 1914, a month before the First World War.
Peugeot's third victory at Indianapolis was won in 1919 when the glorious 4.5 (1914) by Howard Wilcox and Jules Goux took first and third place respectively.
The technical advances of Henry's engine designs allowed them to win races five years after their creation.
Ernest Henry had 101 days (it was in fact necessary to leave Paris no later than April 26, 1919 in order not to miss the boat) to finalize his study and create 4 complete cars for this event.
These four Ballot cars, which were designed in the utmost secrecy, naturally resembled pre-war Peugeots, but Ernest Henry, who took the time during the war to improve his design before the war, resumed his sketch hemi engine with four valves per cylinder, inclined at 60°, controlled by a dual overhead cam head, to equip a straight-eight engine capable of 2900 RPM and giving 150 hp for a top speed of nearly 200 kilometres per hour (120 mph).
The maximum speed of the car was slightly reduced to 180 kilometres per hour (110 mph), but the usability further improved, and this time the Ballot entries finished second, fifth and seventh.
The brand Ballot was the only one to represent France at the 1921 French Grand Prix at Le Mans in July, with three eight-cylinder cars and a new four-cylinder 2-liter engine designed by Ernest Henry also participated in the race.
After this exploit Ballot, dubbed by Charles Faroux, the father of two liters, decided to build in series which was to be the LS type 2, with a 2-liter four-cylinder engine with a two-camshaft, 8-valve head, which he continued manufacturing until 1924, despite its high price due to its refined design and careful construction.