Partnership With Royce
Rolls was introduced to Henry Royce by a friend at the Automobile Club, Henry Edmunds, who was also a director of Royce Ltd. Edmunds showed him Royce's car and arranged the historic meeting between Rolls and Royce at the Midland Hotel, Manchester, on 4 May 1904. In spite of his preference for three or four cylinder cars, Rolls was impressed with the two-cylinder Royce 10 and in a subsequent agreement of 23 December 1904 agreed to take all the cars Royce could make. These would be of two, three, four and six cylinders and would be badged as Rolls-Royces.
The first Rolls-Royce car, the Rolls-Royce 10 hp, was unveiled at the Paris Salon in December 1904, although in the early advertising it was the name of Rolls that was emphasised over that of Royce. In 1906 Rolls and Royce formalised their partnership by creating Rolls-Royce Limited, with Rolls appointed Technical Managing Director on a salary of £750 per annum plus 4% of the profits in excess of £10,000. Rolls provided the financial backing and business acumen to complement Royce's technical expertise. In 1907 Rolls-Royce Limited bought out C.S. Rolls & Co.
Rolls put much effort into publicising the quietness and smoothness of the Rolls-Royce, and at the end of 1906 travelled to the USA to promote the new cars. The company was winning awards for the quality and reliability of its cars by 1907. But by 1909 Rolls' interest in the business was waning, and at the end of the year he resigned as Technical Managing Director and became a non-executive director.
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