The industry began in a small way producing early trams and tram systems, and went-on to produce vast numbers of trolley buses at Guy Motors and Sunbeam, and large numbers of motorised buses at Guy Motors.

The pioneer was Thomas Parker, an inventive genius, who designed some of the earliest trams, including the first British tram system of any size, at Blackpool. Whilst with E.C.C. he developed the area's first electrically-powered tram systems in Birmingham, and the Black Country. He finished his working life in London as chief consulting engineer for the electrification of London underground, and a director of the Metropolitan Railway Company.

In the late 1920's Wolverhampton Corporation decided to replace the existing Lorain tram system with trolley buses, and so the scene was set for a whole new manufacturing industry. Guy Motors were first to respond, and began supplying the town with trolley buses in 1926. Guy was soon followed by Sunbeam, and they both became large manufacturers.

Orders increased as the town's suburbs grew and the bus system was enlarged accordingly. The trolley bus system became the largest in the world, and soon attracted much interest from abroad. Official deputations came from all of the continents to inspect the system, and Wolverhampton became their showcase. The local manufacturers became well known internationally, and orders poured in. Sunbeam and Guy eventually came together and became the largest trolley bus manufacturer in the world. They also produced large numbers of motor buses which were sold worldwide.

Sadly the industry went into decline in the late 1950's and never recovered. The last trolley buses were produced at Fallings Park, Wolverhampton in 1962.

Other manufacturers also produced passenger vehicles. High quality coaches were built in Wolverhampton by A.J.S., and in West Bromwich by Jensen, but only in small numbers. Both Bean in Tipton, and Star in Wolverhampton built lightweight coaches, but again not many were made.

The industry ended with the closure of Guy Motors in August 1982 after 68 years of production.

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