The pattern of development of Vauxhall Motors epitomises the growth of much capitalist enterprise, starting as a small company owned and run by one man, growing into a limited company; thence into a subsidiary of a multi-national organisation. The continuity of the firm remains only in the associations of the name ‘Vauxhall.’ In this chapter the process of change in the nature and size of the company will be examined, outlining the reasons for Vauxhall Motors’ success up to 1919. In addition an analysis will be made as to why the company ran into difficulties in the 1920s which eventually led to its acquisition by General Motors in 1925.

In 1857 Alexander Wilson, a Scottish engineer, founded Alex. Wilson and Company to produce marine engines used in river tugs and pinnaces (a large row boat, usually eight oared and part of a warship, driven by steam and then petrol engines from the 19th century) for which it gained a number of Admiralty contracts. The firm was located near the River Thames at Wandsworth Road, Lambeth, close to Vauxhall Gardens and Vauxhall Bridge, and was thus known locally as the Vauxhall Works. By the 1880s and the 1890s Wilson had diversified into the production of dry air refrigeration plant, used for large scale storage, and donkey engines for boiler water feeders.

Despite Wilson's ability as an engineer he was weak on the financial and managerial side of the business.

The Vauxhall Iron Works was an example of enterprise run by capable engineers, unconscious of the growing importance of financial and managerial techniques. It was, however, a small firm employing no more than 150 men in the 1880s.

In the early 1890s the firm ran into difficulties and the receiver, appointed a Mr. John Chambers, an engineer, to run the firm. In 1892 Vauxhall became a limited company and a Mr. William Gardner took the position of Joint Managing Director with Chambers while Alexander Wilson remained on the Board for another two years.” In 1894 Wilson left and set up as a consulting engineer in Fenchurch Street, London.