BMW: History of the Bavarian Motor Works

BMW at a glance

BMW is known for sporty rear-wheel-drive saloons, its straight-six engines, the M performance division and, more recently, electric cars. It forms Germany's premium "big three" with Mercedes-Benz and Audi. The brand's models, from the BMW X3 to the electric BMW i3, are collected in the BMW catalogue.

Origins and founders (1913–1922)

BMW's history begins with two Munich companies. In 1913 Karl Rapp founded Rapp Motorenwerke to build aircraft engines, and the aviation pioneer Gustav Otto ran an aircraft factory. In 1916 Otto's company was reorganised as Bayerische Flugzeugwerke (BFW); the official founding date of BMW is 7 March 1916. In 1917 Rapp's firm was renamed BMW GmbH, and engineer Max Friz designed the BMW IIIa aircraft engine, whose high-altitude performance made the company's name. In 1922 BFW took over the BMW name and Rapp's engine business, becoming BMW AG. The blue-and-white roundel evolved from Rapp's black-ringed logo; the popular story that it shows a spinning propeller is a myth that came from a 1929 advertisement, twelve years after the logo appeared.

BMW history by era

1923–1945: motorcycles, Dixi and aero engines

With aircraft production restricted after the First World War, BMW turned to motorcycles. The R32 of 1923, with a flat-twin engine and shaft drive, started a line that continues today. In 1928 BMW bought the Fahrzeugfabrik Eisenach and entered the car business with the 3/15, a rebadged Dixi built under licence from the British Austin 7. Sporting cars followed in the 1930s. During the Second World War BMW built the BMW 801 aircraft engine, using forced labour, and car production stopped.

1945–1959: pots and pans, the 501 and the Isetta

After the war BMW was not allowed to build vehicles or aircraft, so it made pots, pans and bicycles. Motorcycle production resumed in 1948 and car production in 1952 with the large 501 saloon. The large saloons sold in small numbers, and the tiny Isetta "bubble car" followed in 1955. The BMW 507 roadster of the period is now one of the most admired classic BMWs. By 1959 BMW was in such financial difficulty that it nearly became part of Daimler-Benz; an investment by Herbert and Harald Quandt kept it independent.

1962–1993: the New Class and the Series names

The New Class compact saloons of 1962 rescued BMW and created its image as a maker of sporty saloons. The 5 Series arrived in 1972, the year the "four-cylinder" headquarters tower in Munich was completed, followed by the 3 Series in 1975 and the 7 Series in 1978. BMW's motorsport division, BMW M, presented its first road car, the mid-engined BMW M1, in 1978, and M versions of the 3 and 5 Series later became icons in their own right.

1994–2012: Rover, Mini and Rolls-Royce

In 1994 BMW bought the British Rover Group, an expensive move that caused large losses. In 2000 it sold most of the Rover brands but kept Mini, which it relaunched as a modern premium small car. In 1998 BMW acquired the rights to the Rolls-Royce brand for cars. During this period BMW also expanded into SUVs with its X range, which included the X3 from 2003.

2013 to today: electric cars

In 2013 the i3 became BMW's first mass-production electric car, with a carbon-fibre passenger cell, and the i8 plug-in hybrid sports car followed. In 2018 BMW and Daimler merged their mobility services. Oliver Zipse succeeded Harald Krüger as chairman in 2019, and Milan Nedeljković succeeded Zipse in 2026. Revenue reached €142 billion in 2024 and €133.45 billion in 2025.

BMW models of the 2000s and 2010s on 1cars

The modern range grew far beyond the classic 3, 5 and 7 Series. The 1 Series, a small family car produced from 2004, replaced the 3 Series Compact as BMW's entry model. The sixth-generation 3 Series, the F30, succeeded the E90 and was presented in Munich in October 2011; it is covered in detail on the BMW 3 Series F30 page. The 7 Series traditionally introduces BMW's new technology first, from the iDrive control system to the Hydrogen 7, one of the first cars with a hydrogen-burning engine. The X3 compact SUV of 2003 was followed in 2010 by the second-generation F25, shown in Paris with all-wheel drive and a choice of six-speed manual or eight-speed automatic gearboxes. Larger and sportier SUVs such as the X6 and the BMW X7 completed the X family, while the M division continued with cars such as the BMW M4.

Landmark BMW models

BMW motorcycles

Motorcycles have been part of BMW for longer than cars. The R32 of 1923 established the layout that became BMW's trademark: a flat-twin "boxer" engine mounted across the frame with shaft drive to the rear wheel. Motorcycle production was the first vehicle business BMW was allowed to restart after the Second World War, in 1948, four years before its first post-war car. The motorcycle division, today called BMW Motorrad, remained an important part of the company: in 2010 BMW built 112,271 motorcycles alongside its cars.

Motorsport and engineering

BMW's engineering reputation began with aero engines and continued with flat-twin motorcycles and powerful straight-six engines. BMW M, founded for racing, turned track experience into road cars such as the M1, M3 and M5. In the 2010s the i3 brought a carbon-fibre passenger cell to a production electric car.

Ownership, factories and production today

The Quandt family has been BMW's most important shareholder since its 1959 rescue. The main plants are in Germany, and BMW also produces or assembles cars in the USA, South Africa, India, Thailand, Malaysia, Egypt and Vietnam. According to the old 1cars text, BMW built 1,366,838 vehicles in 2006 and about 1.48 million cars and 112,271 motorcycles in 2010; in 2024 it sold about 2.5 million cars. The old text also noted that in the late 2000s about 56% of BMW cars were built with petrol engines and 44% with diesels.

BMW in numbers

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