In the early thirties the luxury and sports cars Bugatti made weren't selling due to the depression. Ettore Bugatti turned his attentions to a light railcar concept powered by a development of the Type 41 Royale engine used in multiples- either 2 or 4 engines depending in the model. The prototype was first operated in 1933 and soon led to more units put into service. Although they worked well, they were not economical to run and the last car was retired in 1958.
This publicity leaflet for Ettore Bugatti's Light Railway Car was shown at the 1937 Exposition Internationale in Paris.
Below is a view of the railcar factory floor.