The first Armstrong Siddeley motor car was announced in 1919 as the 30hp with full production and deliveries commencing in 1920, this was followed by a scaled-down version known as the 18hp in 1921 with a family sized car known as the 14/4 beings introduced in 1923. Throughout the 1920s and '30s car production continued apace with new improved models being introduced regularly, these ranged from the relatively moderated sized 12hp family saloons through to the spacious 20/25 limousines.
Work on motors car, aero-engines and aircraft were initially centred on the Parkside works until in 1920 the company purchased the former RAF aerodrome at Whiteley just outside of Coventry. The facility had been used as a storage depot by the RAF, in the opinion of John Lloyd, the chief aircraft designer, it was too small and a rather awkward shape for aircraft testing but John Siddeley when ahead regardless!
Once Whitely had been acquired John Siddeley established a flying school with Major Griffiths as its chief instructor, by 1923 a Government contract to train pilots of the RAF reserve had been secured. This enterprise proved to be very lucrative for Armstrong Siddeley and in future years became a very important part of the companies business.
1923 was also the year that aircraft manufacture moved from Parkside to Whiteley although the design staff remained at Parkside until 1930. Aircraft manufacture was mainly limited to prototype production with an early Siskin being one of the first aircraft to fly out of the airfield. It was not until the following year that full production got underway with a Government contract for Siskin aircraft for the RAF. Aero-engine production remained at Parkside with the very successful Jaguar engine and its derivatives entering full and profitable production by 1923.
By 1926 the Armstrong Whitworth Development Co was prospering; the Jaguar and Lynx Aero-engines had entered full production, the Siskin MkII aircraft was entering service with the Royal Air Force and there was a strong demand for the full range Armstrong Siddeley motor cars.
The same could not be said for the parent company,shipbuilding and heavy engineering had suffered from falling orders following the end of WW1 and they had made a disastrous foray into paper pulp manufacturing in Canada. According to Harold Chapman, a future managing director of Armstrong Siddeley, the £1 shares had slumped from £5 in 1924 to little more than 10 pence in 1926, accordingly, a board of reconstruction was appointed under the chairmanship of Lord Southbouroughwho invited John Siddeley to join his team. Siddeley wasappalled to find that the profits of his company propping up the remainder of Armstrong Whitworth.
This was not an acceptable situation for Siddeley who approached the Midland Bank to seeka loan with a view to purchasing the Development Company from Armstrong Whitworth. The Midland Bank chairman, Reginald Mckenna, who had high regard for Siddeley, immediately advanced an unsecured loan sufficient to buy out the development company together with sufficient working capital.
In November 1926 Siddeley approached the Newcastle board with an audacious bid of £1,500,000 for the Development Company, at first they turned the offer down but such was the dire straits that they found themselves in they finally accepted his offer in December of that year. In 1927 Armstrong Whitworth was acquired by Vickers limited to become Vickers Armstrong.
One of John Siddeley's first actions was to stamp his own authority upon the new company, in March 1927 he called a general meeting for the purpose of changing the name from the Armstrong Whitworth Development Co. to the Armstrong Siddeley Development Co. The main assets of this new company were Armstrong Siddeley Motors and Sir W. G. Armstrong Whitworth Aircraft Co. together with 250,000 shares in the Chelmsford firm of Crompton and Co. manufacturers ofelectrical equipment.
1927 was a year of considerable success for Siddeley's new company with the Siskin Mk IIIA being brought into production together with a large order for the Atlas aircraft, this was also the year that the first of three AWA Argosy passenger planes were delivered to Imperial Airways. Aero-aero engines were still selling well and Armstrong Siddeley Motors had a strong order book.
The A. V. Roe aircraft company was one of the earliest British Aircraft manufacturers and during WW1 its type 504 aircraft saw front line service in the initial phases of the war and then found a second life as a training aircraft. Following the end of hostilities, they found themself in financial difficulties and were acquired by Crossley Motors. By 1928, Crossley needed a cash injection and offered A. V. Roe to Siddeley for a sum of around £250,000. The proposition was attractive to Siddeley as the type 504 trainer was still in production and was now powered by his Lynx aero-engine, the purchase of A. V. Roe was quickly completed ensuring that the 504 would continue to be powered by the Lynx engine.
The Jaguar aero-engine relied upon Aluminium pistons supplied by Peter Hooker Ltd had gone into liquidation, Wallace Devreux who was their manager at the time approached Siddeley for help with funding to form a company to fulfil the large order that had been placed with Hookers. Siddeley advanced him £10,000 which was quickly absorbed and further injections of cash ultimately lead to High Duty Alloys becoming a subsidiary of the Development Company. For as little as £30,000 Siddeley had aquired an important company both for his aero-engines and for the nation as this alloy became an essential part of the aero industry during WW2.
Armstrong Siddeley Development company structure looked like this together with future acquisitions :
