Founded in Le Mans in 1988 by Jean-Paul Driot and F1 driver René Arnoux, DAMS became a competitive force in International Formula 3000, the category immediately below F1. The team secured drivers' championships in 1990, 1993, and 1994. Driot's ambition was to progress to F1, following the example of teams like Jordan, Pacific, and Forti, which had successfully transitioned from Formula 3000.
To design and construct a competitive F1 car, DAMS partnered with British constructor Reynard, an experienced builder of racing cars for junior formulae and the American racing scene. Reynard had also supplied data for the Benetton B192 and Ligier JS37 F1 cars. DAMS established an office near Reynard's headquarters, with Claude Galopin and Rob Arnott leading the chassis design team.
Construction of the GD-01 commenced in 1994, but progress was hampered by limited financial backing. Securing sponsorship proved challenging, partly due to the presence of two established French teams in F1—Ligier and Larrousse—and the regional emphasis on the 24 Hours of Le Mans. Further obstacles arose from changes to the sport's technical regulations, prompted by the deaths of Roland Ratzenberger and Ayrton Senna at the 1994 San Marino Grand Prix. By the start of the 1995 season, the GD-01 was nearing completion. Gérard Larrousse, whose eponymous F1 team was facing financial difficulties, entered into negotiations with Driot regarding the possibility of Larrousse running the GD-01. Driot refused to allow his chassis to be raced by another team without greater involvement, and Larrousse eventually ceased operations without competing in 1995.
The chassis featured a triple bulkhead monocoque constructed from a composite of carbon fibre and aluminium honeycomb, manufactured by SNPE. The bodywork was notably bulky, with sidepods accommodating large water and oil coolers. The GD-01 incorporated a conventional suspension system with wishbones and pushrod-actuated shock absorbers. It had a low-nose configuration, a design choice that other F1 teams were beginning to abandon in favour of higher noses, although Reynard engineers had tested both configurations. Motorsport author Sam Collins described the car's overall aerodynamic package as "underdeveloped."
Powering the GD-01 was a Ford Cosworth ED V8 engine, a new unit introduced for the three-litre era of F1 that began in 1995. This engine was a common choice for smaller teams due to its affordability and ease of installation. It required rebuilds every 400 miles (640 km), weighed 129.5 kilograms (285 lb), had a rev limit of 13,500 rpm, and produced a maximum power of 610 brake horsepower (450 kW) at 13,200 rpm. Initial discussions for a Mugen-Honda engine as part of a potential return to F1 for Honda did not result in an agreement. The car's transmission was a six-speed sequential unit custom-built by Xtrac, which also supplied the differential. Xtrac gearboxes were also utilized in the Minardi M195 and Simtek S951 chassis during 1995. Pi Research provided the electronics, Goodyear supplied the tyres mounted on Enkei wheels, and Elf provided the fuel. A single chassis was constructed.
DAMS unveiled the GD-01 on the starting grid of the Circuit de la Sarthe in late summer 1995. The launch was attended by Driot, Galopin, Arnott, and drivers Érik Comas, Emmanuel Collard, and Jan Lammers. The car was presented in a blue, white, and yellow livery with minimal sponsorship, featuring stickers from technical partners such as Elf. By this stage, the monocoque did not fully comply with the 1995 regulations, although the team's engineers expressed confidence in their ability to modify it.
The GD-01 underwent testing by Comas and Lammers at the Circuit Paul Ricard in October. The car proved to be off the pace, attributed to its cautious bodywork and aerodynamic design. This indicated that a comprehensive development program would be necessary for effective competition in F1, particularly with the impending introduction of the 107% rule for the 1996 season, which would prevent drivers too slow to qualify. However, the team's ongoing struggle to secure sufficient funding meant that Driot missed the deadline to apply for the 1996 championship. He had hoped to enter for the 1997 season, but persistent financial difficulties, the increasing obsolescence of the GD-01's design, and the failures of other teams using the Cosworth ED engine ultimately led him to abandon the F1 venture.
Throughout the development, construction, and testing phases of the GD-01, DAMS continued to operate its International Formula 3000 team, which persists to this day in the FIA Formula 2 Championship. The sole GD-01 chassis remains at the team's factory, while the car's design drawings and documentation are held by Adrian Reynard. The car's Xtrac transmission was later used in the Dome F105, another F1 test project that never entered a Grand Prix. Reynard continued to expand its operations, designing the British American Racing team's initial F1 cars from 1999 onwards, before filing for bankruptcy in 2002.