The company was founded in Rüsselsheim, Hesse, Germany, on 21 January 1862, by Adam Opel. In the beginning, Opel produced sewing machines. Opel launched a new product in 1886: he began to sell high-wheel bicycles, also known as penny-farthings. Opel's two sons participated in high-wheel bicycle races, thus promoting this means of transportation. In 1888, production was relocated from a cowshed to a more spacious building in Rüsselsheim. The production of high-wheel bicycles soon exceeded the production of sewing machines. At the time of Opel's death in 1895, he was the leader in both markets.
The first cars were designed in 1898 after Opel's widow Sophie and their two eldest sons entered into a partnership with Friedrich Lutzmann, a locksmith at the court in Dessau in Saxony-Anhalt, who had been working on automobile designs for some time. The first Opel production Patent Motor Car was built in Rüsselsheim early 1899, although these cars were not very successful (A total of 65 motor cars were delivered: 11 in 1899, 24 copies in 1900 and 30 in 1901) and the partnership was dissolved after two years, following which Opel signed a licensing agreement in 1901 with the French Automobiles Darracq France to manufacture vehicles under the brand name Opel Darracq. These cars consisted of Opel bodies mounted on Darracq chassis, powered by two-cylinder engines.
The company first showed cars of its own design at the 1902 Hamburg Motor Show, and started manufacturing them in 1906, with Opel Darracq production being discontinued in 1907.