In the 1930s, racing driver Freddie Dixon had begun developing ideas for a super-safe family car featuring four-wheel drive and four-wheel steering. When Dixon met Harry Ferguson during the Ulster TT, where Ferguson garaged Dixon's car, the two found common ground. Army officer and racing driver Tony Rolt, who had employed Dixon to maintain his ERA racing car, became interested in Dixon's work, and the three eventually formed Dixon-Rolt Developments Ltd. After the Second World War, Rolt and Dixon persuaded Ferguson to invest money in their company. Ferguson had recently sold out of Massey-Harris — later Massey Ferguson — and had won a substantial patent-infringement lawsuit against Ford in the United States, leaving him with funds to deploy.
Harry Ferguson Research Ltd was formally established in 1950, with premises initially in Redhill, Surrey. Ferguson served as chairman, with Rolt and Dixon as directors. Dixon later departed following a disagreement over relocating the business to Ferguson's premises in Coventry. The company's fundamental goal was to design a four-wheel drive family car and license the technology to a major manufacturer, but despite extensive demonstrations, no manufacturer committed to production.
To showcase the company's four-wheel drive technology, Tony Rolt initiated the development of a Coventry Climax-powered Formula One car in 1960. The timing was late: the 1959 season had already demonstrated the dominance of low, nimble mid-engined cars, and for 1961 the capacity limit dropped to 1500cc. Despite Ferguson's death in October 1960, the Ferguson P99 was completed and raced during 1961 by Rob Walker's team in UK Formula One events.
The car made its sole World Championship appearance at the July 1961 British Grand Prix. However, the P99 achieved its greatest moment in a non-championship race: the September 1961 International Gold Cup at Oulton Park, won by Stirling Moss. This victory stands as the only win by a four-wheel drive car in Formula One history, and it was also the last race Moss won in Europe. Four-wheel drive was eventually banned from Formula One in 1983, but by then it had long since been abandoned by the teams themselves: despite a brief revival of interest in 1969 — when Matra, Lotus, and McLaren all built 4WD cars in response to wet-race frustrations — improved tyre technology and the introduction of aerodynamic wings made the concept redundant. The 1969 British Grand Prix saw a record four 4WD cars entered; Lotus's John Miles achieved the best finish of tenth. Team Lotus made a final attempt with Ferguson's system on the gas turbine-powered Lotus 56B in 1971, but the car was uncompetitive.
Ferguson Research also supplied hardware for American oval racing. In 1964 the company built a Novi-engined car for Andy Granatelli's STP team at the Indianapolis 500, and also provided the four-wheel drive system for the BRM P67 Formula One car that year. The company additionally supplied the 4WD system for the Lotus 56 turbine Indy car and later the Lotus 56B Formula One car.
In 1964 the P99, fitted with a 2.5-litre Climax engine, was loaned to Peter Westbury, who used it to win the British Hillclimb Championship. Westbury subsequently built two four-wheel drive sports-racing cars — the Felday 4 powered by a BRM V8 and the Felday 5 powered by a 7-litre Holman Moody Ford V8 — continuing the design thread originated by Ferguson Research.
Following Ferguson's death, his son-in-law Tony Sheldon took over as chairman and redirected the company toward developing production-ready 4WD systems for car manufacturers. Jensen Motors became the most significant adopter, stretching its Interceptor by 5 inches to accommodate the Ferguson Formula four-wheel drive hardware, creating the Jensen FF, which appeared in 1966. The high cost of the hand-built system prevented commercial success. The company also converted Ford Mustangs and a fleet of Ford Zephyr Mk IV police vehicles for government evaluation.
In 1968, GKN acquired a stake in the company with the intention of mass-producing 4WD systems, but production difficulties prevented a planned 4WD Ford Capri from being made. By 1971, after years of research without a viable production outcome, Tony Sheldon concluded that too much money had been invested without result and closed Harry Ferguson Research Ltd. Tony Rolt subsequently formed FF Developments to continue developing Ferguson's 4WD technology for road cars.
Harry Ferguson Research left two enduring marks on motorsport: the P99's Gold Cup win remains the only four-wheel drive victory in Formula One history, and the Ferguson Formula system seeded a generation of 4WD development in both racing and road cars. The company's work predated by decades the all-wheel drive revolution that eventually transformed road car dynamics.