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In 1884, Frederick Henry Royce started an electrical and mechanical business. He made his first car, a "Royce", in his Manchester factory in 1904. He was introduced to Charles Stewart Rolls at the Midland Hotel in Manchester on May 4 of that year, and the pair agreed to a deal where Royce would manufacture cars, to be sold exclusively by Rolls. A clause was added to the contract stipulating the cars would be called "Rolls-Royce". The company was formed on March 15, 1906, and moved to Derby in 1908.

The Silver Ghost (1906-1925) was responsible for the company's early reputation. It had a 6-cylinder engine; 6173 cars were built. In 1921, the company opened a second factory in Springfield, Massachusetts (in the United States to help meet demand), where a further 1701 "Springfield Ghosts" were built. This factory operated for 10 years, closing in 1931. Its chassis was used as a basis for the first British armoured car used in both world wars.

In 1931, the company acquired rival car maker Bentley, whose finances were unable to weather the Great Depression. From then until 2002, Bentley and Rolls-Royce cars were often identical apart from the radiator grille and minor details.

Rolls-Royce and Bentley car production moved to Crewe in 1946, and also to Mulliner Park Ward, London, in 1959, as the company started to build bodies for its cars for the first time: previously it had built only the chassis, leaving the bodies to specialist coachbuilders.


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