Following the Paris–Berlin race of 1901 — which had been marred by a fatal accident and triggered a temporary French government ban on motor racing — the ACF negotiated conditions for racing to resume. One condition required that the section of the 1902 route passing through Switzerland, where motor racing was banned, be neutralised: competitors had to complete the Swiss transit within a minimum time consistent with a 15 mph speed limit, and Swiss police used telephone communication along the route to enforce it. The 312-kilometre Swiss section was not counted toward race times.
As part of the negotiations with the French government over lifting the racing ban, it was agreed to promote the use of alcohol fuel — of which France had an oversupply — during the Paris–Vienna. René de Knyff's Panhard was the sole Gordon Bennett entrant to run on alcohol.
The race began in Champigny-sur-Marne on the south-eastern outskirts of Paris and proceeded south-easterly through Nangis, Troyes, Langres, and Belfort — the end of the first competitive section (375 kilometres). The neutralised Swiss stage of 312 kilometres carried competitors from Belfort through Basel and Zurich to Bregenz in Austria. Racing resumed from Bregenz and continued east over the Arlberg Pass to Innsbruck, where the Gordon Bennett Cup section finished. The Paris–Vienna race then continued to its final destination in Vienna, completing a total distance of approximately 990 kilometres across three countries.
A total of 219 cars entered the Paris–Vienna race. Among them were the six Gordon Bennett Cup entrants from France and Britain, who started ahead of the main field.
Cars were dispatched at two-minute intervals beginning at 3:30 am from the start line at Champigny-sur-Marne. René de Knyff (Panhard) led the Gordon Bennett section at the end of the first stage, more than an hour ahead of the British Napier of Selwyn Edge. However, while traversing the Arlberg Pass on the third day, de Knyff's differential — which had developed a crack during the Swiss transit — finally failed, forcing his retirement. Edge reached Innsbruck in 11 hours, 2 minutes, and 52.6 seconds to win the Gordon Bennett Cup for Britain.
In the overall Paris–Vienna classification, Marcel Renault claimed victory. Henri Farman finished in the heavy car class as well. Camille du Gast competed in the race, continuing her career as one of the first women to participate at international motor racing level.
The race exposed the cars to enormous mechanical stress, particularly on the mountain sections. The crack in de Knyff's differential had begun on the rough Swiss roads despite the reduced speed through that neutralised section, illustrating how even the ostensibly easy parts of the route wore down vehicles.
New regulations for 1902 imposed a maximum weight limit of 1,000 kilograms (with an additional 7 kilograms allowed if a magneto was fitted). French manufacturers generally modified earlier cars to meet this limit, while Napier constructed an entirely new car designed from the outset for the new regulations, giving the British car a significant weight advantage at 933 kilograms fully fuelled.
The organisers also agreed with Swiss authorities that competitors would use a system of telephone-coordinated policing along the Swiss roads, an early example of regulated transit sections that would become a feature of long-distance rally and road racing events in subsequent decades.
The Paris–Vienna race demonstrated both the maturity and the limits of early intercity automobile racing. The race's international scope — crossing France, Switzerland, and Austria — reflected the ambitions of the French automotive industry and the governing bodies to showcase the automobile as an instrument capable of connecting European capitals. The concurrent Gordon Bennett Cup provided a direct national competition within the larger event.
Marcel Renault's overall victory was a landmark result for the Renault Frères company, adding to the profile of a manufacturer that would go on to win the first true Grand Prix in 1906. The race also highlighted the recurring safety challenges of open-road racing. The following year, Paris–Madrid — a race on a similar model — ended in catastrophe when multiple drivers and spectators were killed, forcing the French government to stop the race at Bordeaux and permanently end the era of long-distance intercity road racing.