BMW — Bayerische Motoren Werke, or Bavarian Motor Works — traces its origins to 1916 and began as a maker of aircraft engines in Munich. It built its first motorcycle in 1923 and its first car in 1928. After the Second World War it came close to bankruptcy in 1959, was rescued by the Quandt family, and rebuilt itself with the “Neue Klasse” sports sedans of the 1960s. Today the BMW Group includes BMW, MINI and Rolls-Royce and is one of the world’s leading premium car makers.

Timeline

Year Event
1916 Bayerische Flugzeugwerke founded (BMW’s official founding date)
1917 Bayerische Motoren Werke name adopted
1923 First motorcycle, the R 32
1928 First car, the Dixi (built under license)
1936 BMW 328 sports car
1959 Near-bankruptcy; Quandt rescue
1962 Neue Klasse 1500
1972 BMW Motorsport (M) founded
1975 First 3 Series
2003 Rolls-Royce Motor Cars begins production

Engines first

BMW’s first success was an aircraft engine known for its performance at altitude. After the First World War, restrictions on German aircraft production forced BMW to make other products, including motorcycles — the R 32 of 1923 introduced the flat-twin “boxer” layout BMW motorcycles still use.

Cars

In 1928 BMW bought a car maker in Eisenach that built the Dixi, a licensed version of the British Austin 7. BMW developed its own cars in the 1930s, culminating in the 328, one of the finest sports cars of its era.

Postwar struggle

After the war, BMW’s Eisenach plant was in the Soviet zone and its Munich plants were damaged. It built large luxury sedans that sold poorly and the tiny Isetta bubble car. By 1959, BMW was nearly taken over by Daimler-Benz. Shareholders and investor Herbert Quandt rescued it.

The Neue Klasse

The 1500 of 1962 — a compact, sporty four-door sedan — defined BMW’s identity: well-built cars that were fun to drive. It led to the 2002, the 3 Series (1975), 5 Series (1972) and 7 Series (1977). Read the BMW 7 Series history.

The modern BMW Group

BMW’s “Ultimate Driving Machine” slogan became famous in the U.S. BMW bought and later sold the Rover Group, kept MINI, and took over Rolls-Royce cars in 2003. It builds its SUVs at its largest plant, in Spartanburg, South Carolina. Read the BMW roundel myth and the BMW X7.