The factory was originally constructed by the Rootes Group in 1940 to build aircraft engines during the Second World War. After the war it became the headquarters of the Rootes Group, but when the organisation entered financial difficulties in the 1960s the company (in stages) and thus the plant were taken over by American car-making giant Chrysler. Chrysler itself entered financial difficulties and sold the plant for a symbolic US$1.00 to PSA Peugeot Citroën in 1978.
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In April 2006, Peugeot decided that the Ryton plant would close during 2007. In the event, it closed on 12 December 2006 and the 140-acre (0.57 km2) site was sold to developer Trenport Investments Ltd for industrial use in March 2007. Demolition of the plant began on 12 November 2007.