BMW

HISTORY
MAZGINE
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Date
Achievement
1916
1916 Establishment of BMW
1917 The BMW logo was establish
1920 The compony was sold to KNORR
BREMSE AG
1922 Company relocation and new
beginning

Date
Achievement
1923 BMW R32- The first BMW Motorrad
1928 BMW begins automotive construction
1934 Aircarft engine manufacture becomes
Autonomous
1936 Establishment of the “Shoadow plant”
Allach

Date
Achievement
1939 BMW takes over Brandenburgischen
Motorenwerke
1941 BMW in world war 11
1942 Forced labor at BMW
1945 Reconstruction difficulties/ the munich
plant is dismantled

Date
Achievement
1948 A motorcycle from nothing : the
BMW R 24
1951 The BMW 501: the first post- war
BMW
1959 BMW remains independent
1961 The new class makes a breakthrough

Date
Achievement
1969 Motorcycle to berlin
1971 BMW kredit gmbh
1972 Founding of BMW motorsport GMBH
1973 BMW headquarters and BMW
museum

Date
Achievement
1973 Worldwide creation of sales
subsidiaries
1979 BMW goes to steyr
1985 BMW Technik GMBH
1987 BMW starts up in Regensburg

Date Achievement
1990 The BMW research and innovation
center : a special kind of think-tank
1994 BMW goes to the USA
1998 Rolls-Royce was acquired by BMW
1999 BMW x5 birth of the sports activity
vehicle

Date Achievement
2000 The Eberhard von kuenheim
foundation/ mini plant oxford
2001 The mini- premium the small-car
segment
2003 Rolls-Royce plant good wood/Roll-Royce
motor cares launches new phantom on
the market
2004 The BMW 1 series-Driving pleasure for

ate Achievement
005 Plant lipzig beings production
007 Opening of BMW welt/ Strategy Number
one
011 Mobility services:Drivnow
013 Launch of the BMWi3

History
Over the last 100 years, BMW has transformed from a struggling airplane engine company to
being the manufacturer of some of the most highly coveted luxury vehicles in the world. The
company has witnessed some of the darkest times in European history but has emerged as a
strong, stable representative of quality German design and engineering.
During its transformation from a
company owning only one small
production facility near Munich to a
global organization owning 30
production facilities in 14 countries on 4
continents, BMW has changed greatly.
The organization has diversified, taken
on social issues and become one of the
major sponsors of professional golf.
BMW has proven that one of the best ways
through adversity is diversity and that
mantra will continue to propel them into
the future. The following article follows the
history of BMW from its foundation in 1917
to its present global operations.

FOUNDATION OF BMW
BMW was the product of three
manufacturing companies that
became Bayerische Motorenwerke
in 1917. Rapp Motorenwerke and
Bayerische Flugzeugwerke were
separate companies until the year
1918 until they were merged into a
new public limited company. In
1918, Rapp Motorenwerke had
been restructured and taken on the
name BMW when it absorbed the
struggling Bayerische
Flugzeugwerke (BFW).

Rapp Motorenwerke
Rapp Motorenwerke GmbH
manufactured aircraft engines in
Germany at the beginning of the 20th
century. It was founded by Karl
Friedrich Rapp in 1913. The company
suffered during the early years of
World War I until it was ordered by
the Prussian army to produce 600
aero engines. This order saved the
company from collapse. Soon after,
the founder, Karl Rapp was forced out
of the company. This prompted a
restructuring that led to the name
change to Bayerische Motorenwerke
GmbH. Newly restructured
Bayerische Motorenwerke was the
first company to use the moniker
BMW.

Bayerische Flugzeugwerke
Gustav Otto, a Bavarian aviator,
founded the Gustav Otto
Flugmaschinenfabrik in 1913 near
Munich. Because of unnamed
issues in the quality of their
products, the company was not
ordered to provide armaments to
the Prussian military during World
War I. The company suffered
financially before it was purchased
by investors and closed in 1918.
After its closure, Bayerische
Flugzeug Werke (also known as
BFW) was merged with the newly
restructured Bayerische Motoren
Werke to complete the
transformation into BMW.

Fahrzeugfabrik Eisenach
Fahrzeugfabrik Eisenach was
founded as a stock company in
1896. The company initially
made bicycles but after two
years in business they began to
produce the Wartburg, a motor
car. This was the third
automobile manufacturer to be
founded in Germany, the first
two being Daimler Motoren
Gesellschaft and Benz & Cie.
The company was acquired by
BMW in November 1928. This
acquisition contributed to
BMW’s shift from
manufacturing airplane engines
to creating civilian automotive
vehicles.

BMW logo
The first BMW logo was created
in 1917, and it includes the colors
blue and white which are the
Bavarian state colors. The logo
was reimagined several
timesthroughout the years, but it
still retained its basic form –
including the blue and white
colors. Many people believe that
the alternating colors in a circle
are an interpretation of an
airplane propeller. In fact, the
BMW logo was an interpretation
of Karl Rapp’s former logo. The
letters ‘BMW’ are arranged
similarly to how Rapp’s original
logo was designed.

Rapp Motorwekre struggled severely because of quality issues until halfway through World War I. When the
Prussian army ordered 600 aeroplane engines from Rapp Motorwerke. Overnight, the company went from
being on the brink of extinction to genuinely contributing to the German war effort, and this allowed them to
acquire BFW in 1918. Two years after the end of the war, in 1920, Camillo Castiglioni, an Italian-Austrian
financier with a passion for aviation, injected capital into the company and gave it a new life. Camilo
Castiglioni was the wealthiest man in Central Europe during that what period. He is widely known for having
owned over 170 different companies. He is often recognized for having provided the financing and guidance
BMW needed to become the successful automotive manufacturer it is today.
In 1922, the company relocated the production center to
the Oberwiesenfeld airfield near Munich. These new
headquarters would become the parent plant for the entire
BMW group. Today, the Munich headquarters employ
9,000 employees who make over 200,000 cars every year.

in 1923, BMW expanded its operations from aeroplane engines to
motorcycles. They announced their first motorcycle that would be called the
R32. This was a big step for the company because it has previously only
made motor engines and not entire vehicles. BMW created a motorcycle
design that was so efficient that the 1923 concept plan is still used in
modern BMW motorcycles.
In 1928, BMW began working on their first car after
they purchased Fahrzeugfabrik Eisenach, the third
automobile manufacturer established in Germany.
Cars were not produced in the Munich production
center. Instead, the company continued to use the
former Fahrzeugfabrik Eisenach plant located in
Thuringia region of Central Germany. The first car
manufactured by BMW was a design borrowed from
the Austin Motor Company. It was not until 1932
that BMW utilized its own designs and built its first
car.

BMW DURING WORLD WAR II
During World War II, BMW manufactured war
materials for the German military. This was not
uncommon as most of the manufacturing
facilities, and production plants in Germany came
under the control of the government following
the Nazi invasion of Poland. During this time,
BMW was devoted almost entirely to making
aircrafts for the German air force and motorcycles
for the German army. Civilian automobile
production came to a complete stop until after
the war
BMW had a dark history during the Second World
War. To keep up with production demands of the
German military, BMW began to employ foreign
workers in the year 1940. These workers worked
on the factory floor taking over the roles that had
been left open by German men who had been
drafted into the military. These workers were not
enough to keep up with the required pace of
manufacturing. Beginning in 1942, BMW began to
employ POWs from Eastern Europe as well as
forced laborers from Western Europe. These
workers worked alongside prisoners from Nazi
concentration camps. All of the workers in these
plants worked in conditions that are considered to
be inhumane. Suitable working conditions were
sacrificed for efficiency. BMW has publically
recognized this history and has expressed sincere
regret over the fate of the workers in their plants
during this tragic period.

Because BMW provided armaments to
the German military, the Allied forces
took control of each of the BMW plants
and dismantled them. To prevent the
total destruction of their company, BMW
began to produce pots, pans, and other
kitchen utensils until they could once
again produce motorcycles and
automobiles.
All BMW plants were dismantled by the
Allies following the war. BMW had little to
no influence over its organization at its
Munich plant until 1949. In the Allach
plant, BMW was not allowed any power
until the year 1955. As a part of war
reparations, many of the machines in the
Munich plant were taken apart and then
shipped overseas as a part of Germany’s
post-war reparations.

BMW – POST-WAR REBOUND
Rebounding from the costs of the post-war reparations was not an
easy task for the German economy or its industry leaders. Thankfully,
the costs of World War II did not lead to the same economic instability
that followed the Treaty of Versailles at the end of World War I.
In 1951, BMW was able to produce its first
automobile since the start of the war. The car was
called the 501. The 501 was a large saloon vehicle
that could seat as many as six people comfortably.
Although it was designed to be a luxury car, it did
not succeed in the luxury market. However, it did
play an important role in re-establishing the
company’s reputation as one of the leading
manufacturers of vehicles that were not only
high-quality but also technologically advanced.
The BMW 501 lived a short life and was taken off
of the production lines in 1958.
After nearly 15 years of uncertainty, BMW
was able to negotiate its independence
for a second time in the year 1959.
Daimler-Benz had its eye on acquiring
BMW through a restructuring package,
but the shareholders of BMW rejected
this generous offer at the end of the year.
With the help of financial assistance from
the German government, BMW was
restructured under new management in
1960.

BMW DURING THE 1970s
Without the pressure of a major
European war, BMW was able to
flourish through the 1960s and
1970s. The company focused on
expansion as well as advancement
throughout this period. Several of
the modern arms of the company
were also formed during this time.
This period of growth resulted in
the multi-faceted organization that
BMW is today.
BMW gained a new kind of independence in the
year 1971 when it established its own financial
subsidiary organization. BMW credit was
established to finance the company’s growth as
well as provide support for their growing
number of dealerships around the world. BMW
credit became the cornerstone in the emerging
automotive leasing market.
The 1970s also saw a period of international expansion
for BMW. In 1972, the company began work on its first
ever overseas production plant. The plant is located
in Rosslyn, near Pretoria in South Africa. The plant
employs 1,700 employees and manufactures around
53,000 units of the BMW 3 Series each year.

South Africa may seem like a strange choice for a company’s
first foray into international production, especially during
this period. However, the company worked hard to provide
jobs during the unstable years of the breakup of Apartheid.
The group took special care to enact measures against
segregation, discrimination and unfair compensation in its
factory. They also committed themselves to providing
support to the local schools as well as cooperating with
local agencies.
The year 1972 was a big year for BMW. The
company also launched their BMW Motorsport
subsidiary. BMW Motorsport brought a lot of
recognition and fame for the manufacturing
quality and power of their vehicles. The success
of BMW Motorsport also influenced the
company’s new directions. With such a popular
subsidiary, BMW eventually began to focus on
building sport vehicles for the average driver.
BMW Motorsport was only the tip of the
iceberg. BMW Golfsport, Yachtsport and BMW
Mountains have all inspired BMW’s impressive
lineup of performance based vehicles.

The theme of progress continued in 1973
when the new BMW complex was opened
in Munich. Work began in 1970 to build a
new block of towers to house BMW rapidly
growing team. Though it was a curiosity at
the time, today the four-cylinder building
has become an iconic part of Munich’s
skyline.
After decades of the Munich arm of
the organization accepting all of the
sales responsibility, Sales Director
Bob Lutz finally began to delegate by
establishing sales subsidiaries. This
event marked BMW’s transformation
from German luxury automotive
manufacturer to key world player.
The first subsidiary opened in France
in 1973 and soon after many
countries began to open their own
sales offices.

TURN OF A NEW CENTURY
As time progressed, BMW became known as
a leader in both luxury and technology.
Between their line of sports vehicles and
their compellingly comfortable sedans, BMW
had set a precedent across the world for
what one manufacturer could achieve.
BMW became know for the extensive
amount of research that went into
designing and producing new vehicles.
In 1990, BMW opened its Research and
Innovation Centre in Munich. It was the
first car manufacturer to open this type
of facility. The facility continues to host
over 7,000 employees. BMW relies on a
variety of scientists, designers,
engineers, managers and technical staff
to work together to create their
modern, luxury vehicles.
In 1994, BMW made it to America. The decision to
build in the United States was made in 1989, but the
facility was not open for business until the early 90s.
The new plant simultaneously cemented BMW’s
position as a global auto manufacturer whilst
producing cars for one of its biggest markets. The
plant was built in Spartanburg, South Carolina and
was initially the dedicated production facility of the
Z3 roadster. Today, the plant continues to produce the
Z3 as well as the recent BMW X series. The X3, X5,
and X6 are all made in the USA.

1994 continued to be a novel year for
BMW when they purchased the Rover
Group. Based in the UK, Rover
manufactured iconic British sport vehicles
like the Land Rover, MG, and the Mini.
BMW had high hopes for the Rover Group
but ultimately, their dreams were not
realized. BMW eventually sold the Rover
Group in 2000, but it retained the Mini
model for its own use.
The decade continued with another
major acquisition: the legendary Rolls-
Royce group. In 1998, BMW negotiated
the ownership of the brand as well as
the naming rights for Rolls-Royce
vehicles, though, the company was still
owned by Volkswagen. In 2002, BMW
finally earned full ownership of the
company and celebrated by building a
new plant in Goodwood, England.

THE MILLENNIUM
After narrowly surviving one of the most tumultuous
centuries in European history, the BMW group has
spent the early years of the new century focusing on
growth, change, and longevity.
The move towards a fully global reach has
continued into the 2000s as BMW opened
up not one but three new production
plants. The Rolls-Royce plant opened in
Goodwood in 2003 followed by a brand new
facility in Shenyang, China. BMW also
opened another plant at home. The Leipzig
plant was considered to be not only a
creator of art but a work of art itself. The
plant won the German Architecture award
the year after it opened.
Today, BMW is governed by Strategie
Number ONE. With a focus on growth,
future, profitability and technology, BMW
looks to the future of the automotive
industry. After enjoying over a century of
success, the leadership at BMW looking
ahead to the year 2020. By 2020, BMW
aims to be the leading luxury automotive
manufacturer in the world.
The Mini was one of the only past reminders of
the previous ownership of the Rover Group. It
began to serve BMW well in the new century
after BMW built a specialized plant to build the
pint-size vehicles. Built in Oxford, England, the
Mini became a global superstar after high
demand required a 150% increase in production
of the vehicle.

BMW has seen both hard times and prosperous times
throughout the 20th century. However, it is the group’s
unstable beginning combined with its unending quest
for self-improvement that has brought it into the 21st
century as one of the top luxury automotive brands in
the world.

current Owner
StefanQuandt
Early Life. Known to be a very exuberant and well-spoken man, he became the owner of close to 17.4% of BMW
automobiles. He is also the owner of several other subsidiaries. He is the deputy chairman of BMW and many in the
industry believe that Stefan will one day head the automobile giant.

all the companies bought by BMW
The BMW Group has a simple structure and it owns:
• BMW.
• Rolls-Royce.
• Mini.

ROLLS ROYCE
Rolls Royce
Rolls-Royce Limited was founded in
1904 by Charles Rolls and Henry
Royce. Royce had built such a great
car that Rolls decided to sell and
market the car under the name
'Rolls-Royce'. The first car created by
both men was the Rolls-Royce 10 HP.
In addition to cars, Rolls-Royce also
built jet engines. Their first example,
the Rolls-Royce Eagle, was made in
1915. It was the first engine to make
a non-stop trans-Atlantic crossing by
aeroplane. It wasn’t a jet engine
however; jet engines came about
soon after WWII.
Car of the YearIt was a rally that
gave the Silver Ghost model its
status as 'best car in the world',
by completing the 14,731-mile
Alpenfahrt in 1913 through
rough territory. This Alpine run
is still going, and it is preferred
you compete with your
classic Rolls-Royce!

Up until 1946, just after WWII, Rolls-Royce did not build or sell
the whole car. Like most manufacturers in those days, they
were specialised in the construction of the engine and chassis
and would have used Park Ward, Barkers, Hoopers or others in
London create a body and coach around it. The first complete
car made by Rolls-Royce was the Silver Dawn. It was produced
between 1949 and 1955 and in that short span of time, only
760 were made. Our expert, Michael, shared that his greatgrandfather
worked for Rolls-Royce in the 1930s and it was his
job to drive the chassis and engine from the one factory to
another and a few weeks later, drive the finished car with the
body back to the first factory.
In 1971 Rolls-Royce went into
liquidation. Early problems with
the RB211 jet engine led to the
company to being taken into state
ownership and the flotation of
the motor car business in 1973 as
a separate entity. One of the cars
created under the new Rolls-
Royce Motors was the Corniche.

For the greatest density of Rolls-Royces in the world, you would have to
visit Hong Kong. This is not as odd as it sounds since Hong Kong has been
under the British Crown from 1841 until 1997 (excluding the Japanese
occupation in World War ΙΙ).
Both Volkswagen and BMW always showed
great interest in acquiring Rolls-Royce. In
1998 BMW was outbid by Volkswagen
(£430 million over £340 million), but it
turns out they bought only part of the
company. Eventually BMW owned the
name and logo, while Volkswagen had
rights to the mascot and grill. They made a
deal which included that, from 2003 on,
BMW was allowed to produce the
complete car under the Rolls-Royce name.
The 2003 Phantom is the first Rolls-Royce built
completely under BMW and comes in a shocking
44,000 hues for the exterior and interior.

Even in this day and age, Rolls-Royce puts an enormous amount of effort into keeping their cars unique; every
engine is hand built.

mini cooper
The original Mini continued in
production until 2000. In 1994,
Rover Group was acquired
by BMW, being broken up in
2000 with BMW retaining
the Mini brand. Development
of a modern successor to
the Minibegan in 1995 and an
entirely new Mini model was
launched in 2001 by BMW.

THE first car of BMW
Dixi
The Dixi was the first car made by BMW.