The business began as the Bonnick Cycle Company of Coventry, England. In 1890 during the pedal cycle craze that swept Britain at the end of the 19th century William Riley Jr. who had interests in the textile industry purchased the business and in 1896 incorporated a company to own it named The Riley Cycle Company Limited. Later, cycle gear maker Sturmey Archer was added to the portfolio. Riley's middle son, Percy, left school in the same year and soon began to dabble in automobiles. He built his first car at 16, in 1898, secretly, because his father did not approve. It featured the first mechanically operated inlet valve. By 1899, Percy Riley moved from producing motorcycles to his first prototype four-wheeled quadricycle. Little is known about Percy Riley's first "motor-car". It is, however, well attested that the engine featured mechanically operated cylinder valves at a time when other engines depended on the vacuum effect of the descending piston to suck the inlet valve(s) open. That was demonstrated some years later when Benz developed and patented a mechanically operated inlet valve process of their own but were unable to collect royalties on their system from British companies; the courts were persuaded that the system used by British auto-makers was based on the one pioneered by Percy, which had comfortably anticipated equivalent developments in Germany. In 1900, Riley sold a single three-wheeled automobile. Meanwhile, the elder of the Riley brothers, Victor Riley, although supportive of his brother's embryonic motor-car enterprise, devoted his energies to the core bicycle business.
