Midland Red's lightweight, chassisless S14/15 single-deckers, in production between 1955-62, had proved very successful and it was no surprise when a stretched version to the new legal dimensions of 36 feet long and 8 feet 2.5 inches wide was introduced in 1962. The increased dimensions of the S16 permitted 52 seats and wider doors and gangways. The proven BMMO 8 litre engine via a constant mesh gearbox was retained but the S16 was a disappointment. Despite its modest unladen weight of under 6.5 tons, it was underpowered when fully loaded and drivers struggled with the combination of manual gearbox and long length. 51 were built in 1962-3 before being overtaken by the new S17 but, surprisingly, 34 more were built in 1964 to use up stocks of 8 litre engines and manual gearboxes.

5545 was the very last manual gearbox bus built by BMMO and entered service in July 1964. It was allocated to Coalville garage until July 1973 when it moved to Stafford. Its final months from January 1976 to withdrawal in July were at Leamington where its smart condition for a bus approaching withdrawal did not escape the notice of a local bus preservation society and the Museum's predecessor was approached to save the bus. The Museum undertook a major body and mechanical overhaul spread over several years. 5545 returned to the road fully restored in 1996.