After the Sunbeam Talbot Darracq alliance collapsed in 1935 the old Talbot factory in Suresnes was taken over by Antony Lago. He introduced a line range of sports cars and two were entered in the 1937 Le Mans 24 Hours. In 1938 one of the cars finished third in the classic French event. In the years before the war some of these cars were stripped down and run as single-seaters. A purpose-built Grand Prix car was finished in 1939 and raced at the French GP by Raymond Mays.
After the war the car was used again and in 1948 Lago agreed to build a small production of an improved version of the car designed by Carlo Marchetti. These enjoyed success in the hands of Louis Rosier, Louis Chiron and Philippe Etancelin. Rosier became French Champion that year. These cars continued to be raced in 1950 and 1951 but were outclassed by the Alfa Romeo and Ferrari machinery, Rosier's best results being third in the 1950 Swiss and Belgian GPs. The company won Le Mans, however, with Rosier and his son Jean-Louis.
In 1951 Lago withdrew the Talbot-Lago works team from the World Championship and left his cars in the hands of privateers, headed by Louis Rosier. Thereafter Talbot concentrated on sportscar racing but finances were weak and in 1959 Lago sold the company to Simca.