Charles Stewart Rolls belonged to a rich family and was a mechanical engineer from the University of Cambridge. In 1903 he along with his partner Claude Johnson set up a firm to import cars from France and USA.
But Rolls wanted to build a British car that would simply be the best. He was told that he had to meet Henry Royce who shared his vision of making good cars. Royce who was almost 15 years elder to him decided to meet Rolls at the Grand Central Hotel in Manchester. Rolls then discovered that Royce had already developed a 2-cylinder car. He borrowed this car and took it to London to show it to his partner Johnson.
By 1906 they formed a company called Rolls-Royce and rest is history.
Today the car making unit is part of the BMW Group.
While the Rolls-Royce unit that makes jet engines is an separate entity.