History of BMW

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BMW is the world's largest premium carmaker and is the parent company of the BMW MINI and Rolls-Royce car brands, and, formerly, Rover. In German, the acronym BMW is pronounced "bay emm vay". In many English-speaking countries, BMW vehicles are referred to as "beemers". The company's taglines in English are "The Ultimate Driving Machine" and "Sheer Driving Pleasure". The original German slogan is "Freude am Fahren", which translates to "Joy in Driving" in English. BMW's main competitors include Acura, Alfa Romeo, Audi, Cadillac, Infiniti, Jaguar, Lexus, Mercedes-Benz and Volvo.

BMW was founded by Karl Friedrich Rapp in October 1913, originally as an aircraft engine manufacturer, Bayerische Flugzeug-Werke. The Milbertshofen district of Munich location was chosen because it was close to the Gustav Otto Flugmaschinenfabrik site, a German aircraft manufacturer. The blue-and-white roundel BMW still used (see the BMW logo) alludes to the blue and white checkered flag of Bavaria and also indicates the origin of BMW by symbolizing a spinning white propeller on a blue-sky background.

In 1916 the company secured a contract to build V12 engines for Austria-Hungary. Needing extra financing, Rapp gained the support of Camillo Castiglioni and Max Friz. The company was reconstituted as the Bayerische Motoren Werke GmbH. Over-expansion caused difficulties; Rapp left and the company was taken over by the Austrian industrialist Franz Josef Popp in 1917, and named BMW AG in 1918.

After World War I, the Treaty of Versailles (1919) prohibited the production of aircraft in Germany. Otto closed his factory and BMW switched to manufacturing railway brakes.

In 1919 BMW designed their first motorcycle engine to be used in a model called the Victoria which was built by a company in Nuremberg.

In 1923 BMW built their first model motorcycle, the R32. This had a 500 cc air-cooled horizontally-opposed engine, a feature that would resonate among their various models for decades to come, albeit with displacement increases and newer technology.

In 1927 the tiny Dixi, an Austin Seven produced under licence, began production in Eisenach. BMW bought the Dixi Company the following year, and this became the company's first car, the BMW 3/15. By 1933 BMW were producing cars that could be called truly theirs, offering steadily more advanced I6 sports and saloons (sedans). The pre-war cars culminated in the 327 saloon and 328 roadster, fast 2.0 L cars, both very advanced for their time.

BMW motorcycles, specifically the BMW R 12 and the BMW R 75 combination 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 to the Luftwaffe and of engines and vehicles, especially motorcycles, to the Wehrmacht. Planes used the aero-engines including the BMW 801, one of the most powerful available. Over 30,000 were manufactured up to 1945. BMW also researched jet engines, producing the BMW 003, and rocket-based weapons. BMW has admitted to using between 25,000 and 30,000 slave labourers during this period, consisting of both prisoners of war and inmates of infamous concentration camps such as Dachau.

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.

In 1952, BMW produced its first passenger car since the war, but its attempts to get into the premium sector were not commercially successful; models such as the acclaimed BMW 507 were too expensive to build profitably and were low volume. By the late 1950s, it was making bu-barrele cars such as the Isetta. In 1959 BMW's management suggested selling the whole concern to Daimler-Benz. Major shareholder, Herbert Quandt was close to agreeing to such a deal, but changed his mind at the last minute because of opposition from the workforce and trade unions and advice from the board chairman, Kurt Golda. Instead Quandt increased his share in BMW to 50% against the advice of his bankers, and he 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 successes in the 700 began to secure BMW's reputation for sports sedans.

At the Frankfurt show in 1961, BMW launched the 1500, a powerful compact sedan, with front disc brakes and four-wheel independent suspension. This modern specification further cemented BMW's reputation for sporting cars. It was the first BMW to officially feature the "Hofmeister kink", the rear window line that has been the hallmark of all BMWs since then.

The "New Class" 1500 was developed into 1600 and 1800 models. In 1966, the 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.

In 1968, BMW launched its large "New Six" sedans, the 2500, 2800, and American Bavaria, and coupés, the 2.5 CS and 2800 CS.

By the 1970s, BMW was commercially successful and in December 1971, moved in to its present HQ in Munich, architecturally modelled after four cylinders.

In 1972, the 5 Series was launched to replace the New Class sedans, with a body styled by Marcello Gandini. 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.

Between 1994 and 2000, under the leadership of Bernd Pischetsrieder, BMW owned the Rover Group in an attempt to get into mass market production, buying it from British Aerospace. This brought the active Rover, Mini and Land Rover brands as well as rights to many dormant marques such as Austin, Morris, Riley, Triumph and Wolseley under BMW ownership.

The venture was not successful. For years, Rover tried to rival BMW, if not in product, then in market positioning and "snob appeal". BMW found it difficult to reposition the English automaker alongside its own products and the Rover division was faced with endless changes in its marketing strategy. In the six years under BMW, Rover was positioned as a premium automaker, a mass-market automaker, a division of BMW and an independent unit.

BMW was more successful with the Mini and Land Rover brands, which did not have parallels in its own range at the time.

In 2000, BMW disposed of Rover after years of losses, with Rover cars going to the Phoenix Venture Holdings for a nominal £10 and Land Rover going to the Ford Motor Company. In the press, many years of under-investment by Rover before BMW's ownership were mainly blamed for the debacle; productivity and industrial relations were generally good during this period. The German press ridiculed the English firm as "The English Patient", after a film at the time. BMW itself, protected by its product range's image, was largely spared the blame — even though it was the serious marketing issues that brought Rover down. Even the British press was not particularly sympathetic toward Rover.

BMW retained the rights to Mini, Rover, Triumph and other marques. MINI has been a highly successful business, though the other names have not been used.

In the early part of the 2000s, BMW undertook another of its periodic cycles of redoing the styling design of its various series of vehicles, under the auspices of newly promoted design chief Christopher Bangle. These designs, which were much curvier and 'swoopier' -- a design cue called "flame surfacing" by Bangle, did not rest well at all with BMW enthusiasts or the automotive press which referred to the new designs as "Bangled" or "Bangle-ized". While Bangle did not pen all of these designs, and has indeed been promoted within the company, some question what long term effect the disaffection of BMW traditionalists for these designs will have on sales, and on the company's future.

Despite the controversy, BMW sales have increased year after year, showing the buying public's embrace of the new design philosophy, which is to raise the contribution of design to equate with that of engineering in the production of a vehicle. Bangle seems to posture that he wants people to either "love" or "hate" a design, but not be indifferent to it. As such, his designs illicit much more emotional response than previous generations.

It should also be noted that BMW's designs, both pre-Bangle and surprisingly since Bangle, are now resonating in the industry at the design level - the "rear end" of the 7-series that most found difficult to digest when it first came out in early 2000s is now appearing in other brands, most notably on the new Lexus LS and the new Mercedes-Benz S-class for 2007 . The iconic "kink" is also a staple of Infiniti as is the "M" moniker, made famous by the higher performance M-series of BMW.

What is not well known, however is that Bangle was indeed responsible for many 'conservative' BMW designs and has worked at BMW for almost a decade. The first X5 sketches (which highly resembled the production car) were designed by him, and under his tenure the E46 3-series came to be.

BMW started producing automobiles at its Spartanburg/Greenville, South Carolina plant in 1994. Today, the plant manufactures the BMW X5 and BMW Z4 Roadster.

The Spartanburg plant is open six days a week, producing automobiles approximately 110 hours a week. It employs about 4,700 people and manufactures over 500 vehicles daily.

After a period of local assembly, BMW's Rosslyn, South Africa, plant now manufactures cars, with over 70 percent of its output destined for export. In the mid-1990s, BMW invested R1 billion to make Rosslyn a world-class facility. The plant now exports over 50,000 3 Series cars a year, mostly to the USA, Japan, Australia, Africa and the Middle East.

Starting from October 2004, BMWs are produced in Shenyang, China. BMW has established a joint venture with Chinese manufacturer Brilliance to build BMW 3 Series and 5 Series vehicles for the local market.

In the early 1990s, BMW and Rolls-Royce Motors began a joint venture that would see the new Rolls-Royce Silver Seraph and Bentley Arnage adopt BMW engines.

In 1998, both BMW and Volkswagen tried to purchase Rolls-Royce Motors. Volkswagen outbid BMW and bought the company for £430 million, but BMW outflanked its German rival. Although Volkswagen had bought rights to the "Spirit of Ecstasy" mascot and the shape of the radiator grille, it lacked rights to the Rolls-Royce name. Rolls-Royce plc (the aero-engine business) retained the rights over the Rolls-Royce trademark and wished to strengthen its existing business partnership with BMW which extended to the BMW Rolls-Royce joint venture. Consequently, BMW was allowed to acquire the rights to the grille and mascot, and licensed the name and "RR" logo after 2003 for £40 million. Volkswagen was permitted to build Rolls-Royces at its Crewe factory only until 2003, but quickly shifted its emphasis to the Bentley brand.

In the meantime, BMW was faced with the need to build a new factory and develop a new model. The new factory at Goodwood produced the new Rolls-Royce Phantom, unveiled on January 2, 2003, and officially launched at the Detroit Auto Show on January 5, 2003. The model, priced around US$330,000, has experienced record sales worldwide of 796 Phantom's sold in 2005.

The current BMW model lineup is split into what they call "Series", traditionally identified by a single digit - e.g. the 3 Series.

In 2004 BMW announced plans to make odd-numbered models sedans and estates or wagons (BMW calls its estates/wagons Touring models), while even-numbered models will be two-door coupés and cabriolets. This convention started informally in 1976 with the introduction of the 6 Series and later continued in 1989 with the 8 Series, but died off when the latter was discontinued in 1999. This practice was revived as the Z4 replaced the aging Z3 roadster in 2003 and continues as the new 6 Series augments the existing BMW 5 Series.

Coupe versions of the 3 Series sedans have always been named 3 Series vehicles, as well. The company had considered renaming future 2-door derivatives of the 3 Series as 4 Series cars, but this plan has reportedly been shelved.

The M letter was used prior to the shift to Series-named cars to designate special "Motorsport" models, beginning with the M1 supercar. Later the M letter was used as a prefix to top-of-the-range models which had received special treatment by the BMW Motorsport division. The first such car was the M535i of 1979. As these models started gaining popularity the Motorsport division was split into a separate company. BMW M GmbH now makes sporty models based on the production cars with very extensive chassis and engine upgrades. The M3, M5, and M6 are based respectively on the 3, 5, and 6 Series and are recognised by enthusiasts all over the world as truly excellent sports cars while retaining the practicality of the models they extend.

With the advent of the SUV, BMW also added the X5 - and in 2004 the X3 - to their model range to capitalize on this growing market. BMW calls its SUV models Sports Activity Vehicles. A possible future V Series will offer MPV practicality for large families, similar to the Renault Scenic.

The term "beemer" started as a pronunciation of the acronym "BMW," adapted from the early-20th-Century British pronunciation of BSA (as "beeser" or "beezer"), whose motorcycles were often racing BMW's. Over time, the term became closely associated with BMW motorcycles.

The term "bimmer" was later coined to refer (exclusively) to BMW automobiles. As such, use of the word "beemer" to refer to a BMW automobile is frowned upon by BMW enthusiasts, because it is the term used for motorcycles, though the distinction is somewhat arbitrary. Interestingly, in the German language, the correct pronunciation of the term "bimmer" is "beemer". BMW is also the acronym in the UK for a cocktail of Baileys, Malibu and Whisky.

BMW has always had a very tight and loyal community following. They're one of the few automakers that support driving their cars to their limits, suggesting "spirited driving" in certain operation manuals. In the summer of 2001, BMW even went as far as starting the BMW Films website, showcasing some sporty models being driven to extremes. These videos are very popular within the enthusiast community and have opened the eyes of many owners looking for a sporty/fun car. However, even with all this success, on October 21st, 2005, the BMW Films were taken offline.

The BMW enthusiast community however, remains extremely active. Online forums like E46fanatics.com, M3forums.com, and bimmerforums.com are examples of how loyal BMW enthusiasts are. They are some of the most active car forums on the web.

Every year since 1999, BMW enthusiasts have met up in Santa Barbara, CA to attend "Bimmerfest." Perhaps one of the largest brand-specific gatherings in the U.S. Over 3000 people attended this past year (2006), and there were over 1000 cars present.