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Vers 1908 chez Deutz Bugatti produisit, à ses frais, (et, dit-on, dans la cave de sa maison à Köln) la "Lilliput-chassi" qui serait la base pour ses futurs pur-sang. Ce fut le type 10 de la série Bugatti. Certains disent que cette voiture est plutôt inspirée des voiturettes coupés Isotta Fraschini de 1908, et d'autres sont convaincus que non. En 1909 Bugatti résolu son problème financier, et fut en mesure de démarrer sa propre production, avec les types 13, 15 et 17.
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Having been fired from De Dietrich, Ettore Bugatti moved to Strasbourg where, along with E.E.C. Mathis – the French agent from “De Dietrich” – he started the production of a car called “Hermes”, “Hermes-Simplex”, or sometimes “Mathis-Hermes”; the car was far more advanced than those produced by De Dietrich. The Hermes-Simplex was introduced at the 1904 Paris motor show. The range was later made wider with three or even four models. The Hermes ran some races with such drivers as Bugatti, Gustav Langen, Emile Mathis, De Vizcaya, and Robert Dunlop. In 1906 or 1907, Mathis and Bugatti had a row with each other and split. Mathis continued his way under his own name, and Bugatti joined Deutz in Cologne.
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