In 1906 H. F.S Morgan opened a garage and motor works in Malvern. (UK). At the time H.F.S Morgan was a district agent for Wolseleys and Darracqs and he also started one of the first bus services in the country, running a 15 seater Wolseley from Malvern Link to Malvern Wells and, later, from Malvern to Gloucester.
In 1909 Morgan created his first 3-wheeler which he called the Morgan Runabout. Powered by a 7 hp twin-cylinder Peugeot engine Morgan had intended to build a motorcycle but changed his mind and built a single seater 3-wheeler. The chassis was built at the Malvern College work shop by Stephenson Peach, then engineering master at Malvern and Repton.With its light weight the Morgan Runabout had a power weight ratio of approximately 90 hp per ton, and as a result of its high performance became very popular. In 1910 Morgan obtained his first patent for his design and after exhibiting two Morgan Runabouts at the Olympia Show in 1911 Morgan went into production. Now powered by a single cylinder 4 hp and twin cylinder 8 hp JAP engine, Morgan in 1912 advanced the design by creating a new chassis with a two-seater body and several models were exhibited at Olympia in that year.
In 1912 Morgan became a Limited Company and during the next few years the Morgan was successfully collected numerous gold medals, first class wards and trophies in trials, hill climbs and races. The Morgan became advertised as “The Fastest 3-wheeler in the World”.
Morgan's first attempt at Brooklands was in the International Cyclecar Race when a Morgan driven by Mr. Harry Martin easily came first. H.F.S. Morgan then broke the 1100 c.c. Hour Record at a speed of nearly 60 m.p.h. and as a result became the first holder of "The Light Car and Cyclecar" Challenge Trophy. Morgan then went on to produce racing cars in 1913 that had a longer chassis and O.H.V. JAP engines. The vehicle won the Grand Prix with ease and the racing model then became known as the Grand Prix. The successes of the Morgan Motor Company were soon to prove essential as when the first world war broke out in 1914, Morgan’s sales had never been higher. Despite the fact that part of the factory had to be converted to producing shells and other munitions for the war effort, limited production of the Morgans was able to continue through out the war.
H.F.S.Morgan realised the sooner he could get his factory back into full production after the war, he could sell many cars in the post-war rush. This he managed to do as at the end of the war most manufacturers were unable to switch to full production for nearly a year due to the lack of materials. lt was in the two years after the war record sales and profits were bestowed upon the Morgan Motor Company. Morgan had built a four- seater model for his own personal use in 1915. This later became successfully marketed as the Family Runabout. Towards the end of the 1920’s and into the 1930’s, it was the General strike and depression that changed Margins advertising to emphasis ’tax, economy, comfort and cost’, but Morgan realised to beat this depression and to prevent going into liquidation like many other companies, he had to introduce a 4-wheeler car. This it did in 1936, and continued to produce 3/4-wheelers up until the second world war The ‘Lightcar and Cyclecar’ magazine wrote in 1925
“were it not for the dogged and justly well rewarded persistence of one manufacture it is doubtful whether the great mass of the motoring public would not regard the 3-wheeler as a freak and nothing more.
(Lightcar and Cyclecar magazine.25th September 1925.):