Ettore Bugatti had designed a baby car in 1912, which he licenced to the Peugeot company. Contacts were evidently maintained with that company, since years later he designed a 996cc supercharged engine for use in the 201 series of Peugeots cars, known as the 201X. About 20 of these were made, mostly with cabriolet bodywork. Peugeot were anxious to produce a high performance sportscar and the choice for a Bugatti engine was no doubt appropiate.

The engine, known as type 48, was virtually half of a Type 35 engine, 60 x 88 mm, capacity 996cc, and used half of the normal roller bearing, G.P. crankshaft, and a single cylinder block, although the cambox had a rounded top. Another Molsheim feature was the quarter elliptic springs at the rear, but the transverse front spring was Peugeot. The wheelbase was 2.47m and the track was 1.15m

The Peugeot had an unhappy history: The famous racedriver André Boillot was killed in one on the 5th of June 1932, while practising for the Cote d'Ars race. He had had a long period of success as a driver for Peugeot and had just completed a few days previously a 24 hour run in a Peugeot 301C averaging 68 mph without a relief driver.

One example of the 201X engine is known to exist today.