The CD Dyna emerged from a partnership between Charles Deutsch and Panhard in late 1961, following the end of Deutsch’s collaboration with René Bonnet. Panhard commissioned Deutsch to design a successor to his DB HBR 5 for the 1962 24 Hours of Le Mans. Deutsch had previously worked with Panhard components, and drawings for a car anticipating the CD Dyna existed as early as October 19, 1960. Five CD Dyna cars were built: one with a hand-hammered steel body and four with glass-reinforced plastic (GRP) bodywork by Chappe et Gessalin, all sharing a steel backbone chassis.
The CD Dyna first appeared at the Le Mans test days in April 1962, competing in the class for prototypes with engines up to 850 cc. At the 1000 km of Nürburgring on May 27, 1962, chassis 101 finished 24th overall, while chassis 102 did not finish due to an accident. Four CD Dyna cars were entered in the 24 Heures du Mans in June 1962. Chassis 53, driven by André Guilhaudin and André Bertaut, finished 16th overall and won its class, achieving an average speed of 142.793 km/h and a fastest lap of 5 minutes 22 seconds. The car also placed third in the “Indice au rendement énergetique” with an average fuel consumption of 11.4 L/100 km.
Following the CD Dyna, the production Panhard CD debuted at the 1962 Salon de l'Auto in Paris. The CD featured a distinctive tapering rear and “double-bubble” roof, with a lightweight fibreglass body giving it a drag coefficient of 0.22. It was mounted on a torsionally-rigid central backbone frame. The car was sold in two trim levels: GT, priced at 15,500 francs, and Rallye, at 16,500 francs. Both versions were powered by Panhard’s 848 cc M5-T “Tigre” engine, producing 36.5 kW (49 hp) in the GT and approximately 44.0 kW (59 hp) in the Rallye.
The Panhard CD won the Grand Prix de l'Art et de l'Industrie Automobiles Français (Sports and Grand Touring category) at the Paris Salon de l'Auto in September 1964. Production continued until July 1965, with a total of 184 cars built including the five CD Dynas. Chassis numbers ranged from 101 to 284, with some sources suggesting three additional cars remained unassembled.
Deutsch continued development with the Panhard LM64, an ultra-streamlined car built for the 1964 Le Mans race. Two LM64s were constructed, featuring a revised chassis and a supercharged Panhard engine producing 58.2 kW (78 hp). Both cars entered the 1964 24 Hours of Le Mans, but both retired during the race – one with a gearbox failure and the other with an engine failure. The LM64s were not raced again after 1964.