The company was founded in 1905 by Louis Delage, who borrowed Fr 35,000, giving up a salary of Fr 600 a month to do so.
Its first location was on the Rue Cormeilles in Levallois-Perret. The company at first had just two lathes and three employees,2 one of them Peugeot’s former chief designer. Delage initially produced parts for Helbé, with the De Dion-Bouton engine and chassis assembled by Helbé; Delage added only the body.
The first model was the Type A, a voiturette which appeared in 1906. It was powered by a one-cylinder De Dion-Bouton of 4.5 or 9 hp (3.4 or 6.7 kW; 4.6 or 9.1 PS). Like other early carmakers, Delage participated in motor racing, entering the Coupe de Voiturettes held at Rambouillet in November 1906 with a 9 hp (6.7 kW; 9.1 PS) racer. Seven days of regularity trials decided the entrants, and one of the two 9 hp (6.7 kW; 9.1 PS) Delage specials was wrecked in the rain on the fifth; nevertheless, Ménard, the other works driver, came second in the event, behind a Sizaire-Naudin.
In 1907 the factory moved to the Rue Baudin Levallois, where a 4,000 m2 (43,000 sq ft) workshop allowed it to grow. The two-cylinder Delages were no match for the competition this year at the Coupe des Voiturettes.