In the 1860s, the Belgian-German company "Van der Zypen & Charlier" received an order to build 500 cars for the Riga-Dvina Railway. To avoid paying import duties, in 1869 they opened a branch in Riga for assembling cars from imported parts. Five years later, this branch was transformed into the "Joint Stock Company Russian-Baltic Wagon Factory" (RBW or Russo-Balt) with a capital of 1.2 million rubles. By that time, the factory had already mastered the independent production of freight cars, and from 1875 began producing passenger cars. However, until the 1890s, demand for them in the Russian Empire was low.

The situation changed with the start of construction of the Trans-Siberian Railway. The press noted that "1893 marked the beginning of a brilliant era for the factory." In 1894, Russian entrepreneurs joined the joint-stock company, making it independent from the foreign firm. The capital increased to 4.8 million rubles, and then to 9.6 million. The flourishing of Russo-Balt was aided by increased demand for products during the Russo-Japanese War, but after its end, production volumes sharply decreased. Despite an order for cars for Italy, the working rhythm was disrupted.

In 1908, the chairman of the board M.V. Shidlovsky proposed to start automobile production. For this, a workshop with 142 modern machines was built. The body, tin, upholstery-painting, spring, forging, and casting shops were engaged in preparations and specialized work. The automotive department, headed by engineer I.A. Fryazinovsky, included machining and assembly divisions, as well as mechanical and testing laboratories. A Belgian engineer, Julien Potter, was invited to the factory, having experience in machine design.

The first serial car was produced on May 27 (July 8 in the old style) 1909. It was equipped with a 4-cylinder engine with a power of 30 horsepower. The radiator bore the inscription "Russian-Baltic," and later the brand "Russo-Balt" was established. The magazine "Automobile" wrote in 1909: "An elegant racing-type carriage, gray in color, appeared on the streets of St. Petersburg, attracting attention with its appearance and Russian flag."

The development of the industry was facilitated by a government decree of Russia, which allocated subsidies for the production of domestic cars to five factories, including Russian-Baltic. "Russo-Balts" were assembled in large batches, and model series could vary in engine power, number of gears, wheelbase, and node design. All parts were produced independently by RBW, except for tires, oil pressure gauges, and ball bearings. The factory had carriage departments in Riga and St. Petersburg, where it produced bodies: torpedo, phaeton, limousine, berlina, landaulet, and others. In 1910, five models of "Russo-Balts" were presented at the International Automobile Exhibition in St. Petersburg, and at the next salon, six.

Annually, 100 to 140 cars were produced in small series of 3 to 50 units, priced from 5.5 to 8.4 thousand rubles. Four types of passenger cars and three types of trucks were produced, as well as special versions. The racing "Russo-Balt" reached a speed of 128.5 km/h in 1913. A semi-tracked version from 1915, created under the patent of K. Kegress for the army, is also known.

The reliability of the cars was confirmed by racer and journalist A.P. Nagel, who finished first in the international rally "Monaco," taking ninth place in the overall classification. For this, he received the Order of St. Anna of the 3rd degree and a gilded cup from the Imperial Automobile Society.

Until 1914, "Russo-Balt" cars participated in competitions and exhibitions, receiving gold medals. Nicholas II purchased several of the first specimens for his garage. From 1909 to 1915, 625 cars with the emblem of the double-headed eagle were manufactured in Riga. In 1918, the last "Russo-Balt" was assembled at the evacuated factory in Moscow.

Over the years, the enterprise produced thousands of wagons, trams, military equipment, engines, and other machinery. Subsequently, many global corporations repeated this production scheme. RBW entered history as the first wagon and automobile manufacturing complex in Russia. In 1915, with the onset of World War I, the factory was evacuated. Later, its premises were used by the Riga Dairy Plant. Today, the traditions of the factory are upheld by a small firm "Russo-Balt," which produces automotive trailers.