The Gloucester Wagon Company was founded in January 1860. Construction of the workshops commenced in April 1860. In 1888 the name of company was changed to the Gloucester Railway Carriage and Wagon Company. During its period of operation the company also had several subsidiary companies.

It was launched by group of owners comprised of Richard Potter, Edmund Walton, W.C. Lucy and William Nicks, J.N. Brown, of the South Staffordshire Railway, and Richard Tew Smith of the Great Western Railway who went on to become Director.

The company was successful and soon began exporting wagons internationally. It branched out into producing railway carriages and horse-drawn carriages. In the twentieth century the company also produced electric and diesel railcars and tramcars.

On 29th December 1961 the company was taken over by Wignet Ltd. and was renamed Gloucester Engineering Ltd.