The origins of the Motor Rail company can be traced back to the patenting of a gearbox by John Dixon Abbott of Eastbourne in 1909 ("Change speed and reversing gearbox suitable for use in motor-trams", UK Patent 18314). In March 1911, he formed The Motor Rail & Tramcar Co Ltd, with his father John Abbott and brother Tom Dixon Abbott. The stated aim of the business was developing the gearbox and incorporating it in tramcars and railcars. At about the same time operations moved to Lewes, Sussex and rented space in the Phoenix Foundry of John Every, where they developed a narrow-gauge rail vehicle around the Dixon-Abbott gearbox using a twin cylinder water-cooled Dorman engine.