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Chevrolet was founded by Louis Chevrolet, a race-car driver, and William Durant founder of (GM),who had been forced from the management of GM in 1910. He wanted to use Chevrolet's designs to rebuild his own reputation. As head of Buick Motor Company, prior to founding GM, Durant had hired Chevrolet to drive Buicks in promotional races.

Chevrolet first used its "bowtie" logo in 1913. It is said to have been designed from wallpaper Durant once saw in a French hotel. More recent research by historian Ken Kaufmann presents a compelling case that the logo is based upon a logo for "Coalettes". Others claim that the design was a stylized Swiss cross, in honor of the homeland of Chevrolet's parents.

In control, Durant was in the process of setting up Chevrolet production facilities in Toronto, Canada. Later that year, during a luncheon meeting in New York with "Colonel Sam" McLaughlin, whose McLaughlin Motor Car Company manufactured McLaughlin-Buick cars, it was agreed that Chevrolets with McLaughlin-designed bodies would be added to the Canadian company's product line. Three years later, the two Canadian operations (Chevrolet was by then a part of GM in the United States) were bought by GM to become General Motors of Canada Ltd.

By 1916, Chevrolet was profitable enough to allow Durant to buy a majority of shares in GM. After the deal was completed in 1917, Durant was president of General Motors, and Chevrolet was merged into GM, becoming a separate division. In the 1918 model year, Chevrolet introduced the Model D, a V8-powered model in four-passenger roadster and five-passenger tourer models. It also started production of a overhead valve in-line six. Most cars of the era had only low compression flat head engines. These cars had 288in3 55 hp (41 kW) engines with Zenith carburetors and three-speed transmissions.