While working for De Dietrich Bugatti met Émile Mathis. The two became first friends and then business partners, leaving De Dietrich in 1904 in order to produce automobiles of their own, which were identified with the name "Mathis-Hermes (Licence Bugatti)". This arrangement lasted till 1906 after which the partners went their separate ways, and Bugatti set up a "Research centre" at Illkirch-Graffenstaden, now a suburb on the south-side of Strasbourg. He produced several prototypes, collaborating closely with the Cologne based Deutz company.