A Storied History
Pre-WWII
BMW was founded by Karl Rapp originally as an engine manufacturer (predominately aircraft engines supporting the German war effort), Rapp Motor. Adam Motoren Werke GmbH was founded as a successor company to Rapp Motor on July 21, 1917.
In 1916 the company secured a contract to build V12 engines for Austro-Daimler. Over-expansion caused difficulties and Rapp left the company. It was taken over by the Austrian industrialist Franz Josef Popp in 1917, and re-named BMW AG.
After World War I, the Treaty of Versailles (1919) prohibited the production of aircraft in Germany, and BMW switched to manufacturing railway brakes.
In 1919 BMW designed its first motorcycle engine, used in a model called the Victoria, which was built by a company in Nuremberg. Then, in 1924 BMW built its first motorcycle, the R32. It had a 500 cc air-cooled, horizontally-opposed engine, a feature that would remain in their models for decades to come. The major innovation was the use of a driveshaft instead of a chain to drive the rear wheel. The shaft-driven boxer engine became the mark of the BMW motorcycle.
In 1928 BMW bought the Dixi Company, and the tiny Dixi became the first BMW automobile, the BMW 3/15. By 1933 BMW was producing cars that could be called truly theirs, offering steadily more advanced I6 coupes and sedans. The pre-war cars culminated in the 327 coupé and convertible, and the 328 roadster, both very advanced for their time, as well as the upscale 335 luxury sedan.
World War II
The BMW R12 and the BMW R75 motorcycles were used extensively by the Aufklärungsabteilung of German panzer and motorized divisions of the German Army, Waffen SS and Luftwaffe.
BMW was also a major supplier of engines. Planes used aero-engines including the BMW 801, one of the most powerful available. Over 30,000 were manufactured up to 1945.
The BMW works were heavily bombed towards the end of the war. Of its sites, those in eastern Germany (Eisenach-Dürrerhof, Wandlitz-Basdorf and Zühlsdorf) were seized by the Soviets. The factory in Munich was largely destroyed.
Post-war history
After the war the Munich factory took some time to restart production in any volume. BMW was banned from manufacturing for three years by the Allies and did not produce the R24 motorcycle until 1948, and a car model until 1952.
In the east, the company's factory at Eisenach was taken over by the Soviet Awtowelo group which formed the Eisenacher Motor-Werke. They offered "BMWs" for sale until 1951, when the Bavarian company prevented use of the trademarked name, logo, and "double-kidney" radiator grille.
In the west, the BAC, Bristol Aeroplane Company, inspected the factory, and returned to Britain with plans for the 326, 327 and 328 models. These plans, which became official war reparations, along with BMW engineer Fritz Fiedler, allowed the newly formed Bristol Cars to produce a new, high-quality sports sedan, the 400, a car so similar to the BMW 327 that it kept the famous BMW grille.
In 1948 BMW produced its first postwar motorcycle and in 1952 it produced its first passenger car since the war. However, its car models were not commercially successful; models such as the acclaimed BMW 507 and 503 were too expensive to build profitably.
In 1959 BMW nearly sold the company to Daimler-Benz. Major shareholder, Herbert Quandt was close to agreeing to the deal, but changed his mind at the last minute. Instead Quandt increased his share in BMW to 50% against the advice of his bankers, and was instrumental in turning the company around.
That same year, BMW launched the 700, a small car with an air-cooled, rear-mounted 697 cc boxer engine from the R67 motorcycle. Its bodywork was designed by Giovanni Michelotti and the 2+2 model had a sporty look. There was also a more powerful RS model for racing. Competition success with the 700 began to secure BMW's reputation for sports sedans.
At the Frankfurt Motor Show in 1961, BMW launched the 1500, a powerful compact sedan, with front disc brakes and four-wheel independent suspension. It was the first BMW to officially feature the "Hofmeister kink", the rear window line that has been the hallmark of all BMWs since.
The "New Class" 1500 was developed into 1600 and 1800 models. In 1966, a two-door version of the 1600 was launched, along with a convertible in 1967. These models were called the '02' series—the 2002 being the most famous—and began the bloodline that later developed into the BMW 3 Series.
By 1963, with the company back on its feet, BMW offered dividends to its shareholders for the first time since before World War II.
By 1966, the Munich plant had reached the limits of its production capacity. Although BMW had initially planned to build an entirely new factory, the company bought the crisis-ridden Hans Glas GmbH with its factories in Dingolfing and Landshut. Both plants were restructured, and in the following decades BMW's largest plant took shape in Dingolfing.
In 1968, BMW launched its large "New Six" sedans, the 2500, 2800, and American Bavaria, and its coupés, the 2.5 CS and 2800 CS.
Already commercially successful by the mid 60s, in December 1971, BMW moved to their new HQ in Munich, architecturally modeled after four cylinders.
In 1972, the 5 Series was launched to replace the New Class sedans, with a body styled by Bertone. The new class coupes were replaced by the 3 Series in 1975, and the New Six became the 7 Series in 1977. Thus the three-tier sports sedan range was formed, and BMW essentially followed this formula into the 1990s. Other cars, like the 6 Series coupes that replaced the CS and the M1, were also added to the mix as the market demanded.
From 1970 to 1993, under Eberhard von Kuenheim, turnover increased 18-fold, car production quadrupled and motorcycle production tripled.
In the early 2000s, BMW undertook controversial design changes to its vehicles, under newly promoted design chief Christopher Bangle. Bangle is often mistakenly accused of penning all of the designs himself; however, he only chose which design was to be used. His designs were highly criticized. Nevertheless, sales at BMW have increased every year since some of his most debated designs went into production.
Production outside Germany
BMW produces many of its vehicles outside Germany. It has plants in:
USA
Britain
South Africa
Russia
China
Egypt
India
Greece (2009)