
In the 1920s Douglas built the first disc brakes, and had a Royal Warrant for the supply of motorcycles to the Princes, Albert and Henry.
Douglas motorcycles also became popular in dirt track racing. The 1923 RA model with disc brakes was favoured initially and this prompted Douglas to build specific dirt track models. These motorcycle designs were gradually increased in size and power with 500 cc and 600 cc engines fitted to the DT5 and DT6 Dirt Track models in the late 1920s and early 1930s. The engines had hemispherical heads and a short rigid forged crankshaft. They dominated dirt track racing for about three years. In 1929, the most successful dirt racing year, 1,200 Dirt Track motorcycles were sold.
The Endeavour, a 494 cc shaft drive model came out in 1934. Like other companies of the time, they were struggling, and attempting to diversify into other modes of transport. In 1935 they were taken over by BAC, Bond Aircraft and Engineering Company.
Motorcycle production continued into World War II and was extended to generators. In 1948, not long after the war, Douglas was in difficulty again and reduced its output to the 350 cc flat twin models. The 1955 350 cc Douglas Dragonfly was the last model produced. The Westinghouse Brake and Signal Company Ltd bought Douglas out and production of Douglas Motorcycles ended in 1957.
Douglas continued to import Vespa scooters into the UK and later imported and assembled Gilera motorcycles.
Douglas gained significant attention in 1932–1933 when Robert Edison Fulton, Jr. became the first known man to circumnavigate the globe on a 6hp Douglas twin fitted with automobile tyres. Fulton went on to write a book on his adventure titled "One Man Caravan".
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