The history of the BMW Group dates back to 1916. With its BMW, MINI, Rolls-Royce and BMW Motorrad brands, today the company is one of the world’s leading premium manufacturers of automobiles and motorcycles and a provider of financial and mobility services. With a clear focus on the future, sustainability and efficient resource management are central to our strategy. Discover more about the history of the BMW Group and how its focus has evolved over the years.
1916 – BMW is born.
BMW’s origins lie in two aviation-related companies: the aircraft manufacturer Flugmaschinenfabrik Gustav Otto and the aero engine producer Rapp Motorenwerke.
In 1916, at the request of the government, Flugmaschinenfabrik Gustav Otto was reorganised and renamed the Bayerische Flugzeugwerke (Bavarian Aircraft Factory, BFW). One year later, Rapp Motorenwerke was also renamed, becoming Bayerische Motorenwerke GmbH (Bavarian Motor Works, BMW). In 1918, BMW became a public limited company – BMW AG – which in 1922 transferred its name, assets and engine operations to BFW. Since then, the foundation of BFW on 7 March 1916 has marked the official founding date of BMW.
Since 1917 every BMW product has borne the blue-and-white logo in the colours of Bavarian. The logo was first portrayed as a stylised rotating propeller in advertising materials of the late 1920s – an interpretation that endures to this day.
After the end of World War I, when aero engine production was no longer permitted, BMW switched to manufacturing railway brakes and inboard engines. In 1920 the company was sold to Knorr-Bremse AG – but the financier Camillo Castiglioni purchased the BMW name and logo, along with the engine production facilities and workforce, and integrated them into BFW. In the same year, the company relocated to the BFW plant in Munich’s Oberwiesenfeld district – which remains home to BMW’s main plant and headquarters to this day.
The Berlin Motor Show of 1923 marked the beginning of BMW’s motorcycle success story, when the aero engine manufacturer unveiled its first bike, the BMW R 32. Quality played a decisive role in the model’s success: the components most susceptible to failure were enclosed, and the drive shaft was easier to maintain than standard chains or belts. The Boxer engine with its transversely mounted cylinders and the drive shaft remain characteristic features of BMW bikes to this day. The overall design – engineered by Max Friz – proved highly successful, and the R 32 became a milestone in motorcycle history.
BMW first entered the world of automobile production when it took over the vehicle manufacturer Fahrzeugfabrik Eisenach in the state of Thuringia. From 1929 until the outbreak of the Second World War, all BMW cars were built at the Eisenach plant, starting with small models made under licence from the Austin Motor Company and culminating in BMW’s own models in 1932.
Under National Socialist rule, BMW was transformed from a mobility company to an armaments manufacturer and became a major enterprise in the German war economy. While automobile and motorcycle production continued, it was the aero engine division that generated most of the company’s revenues. As rearmament intensified, BMW established new facilities and increased production capacity to meet demand. During the war years, the company management showed no ethical restraint in the use of forced labour, including concentration camp prisoners, to help it meet production targets.
From 1933 aircraft construction was heavily subsidised by the German government, so in 1934 BMW AG transferred its aero engine activities to a separate entity, BMW Flugmotorenbau GmbH. Two years later, BMW AG and BMW Flugmotorenbau GmbH jointly founded the Flugmotorenfabrik Eisenach GmbH to handle their aviation-related business. In 1939 the new company was renamed BMW Flugmotorenwerk Eisenach GmbH.
BMW AG and BMW Flugmotorenbau GmbH established another aero engine plant, Flugmotorenfabrik Allach GmbH, on the outskirts of Munich. One year later they transferred their shares to Luftfahrtkontor GmbH Berlin, which covertly subsidised the Allach facility with government funding. Allach underwent considerable expansion and was producing aero engines on an industrial scale by 1941.
BMW and the Berlin-Spandau-based Brandenburgische Motorenwerke GmbH (Bramo, formerly Siemens Apparate- und Maschinenbau GmbH) merged their development activities for air-cooled aero engines. One year later, on the eve of World War II, BMW took over Bramo completely and integrated its Berlin plant into BMW AG under the name BMW Flugmotorenwerke Brandenburg GmbH.
1945 – A difficult return.
After World War II, allied troops requisitioned and occupied BMW’s plants, dismantling machines and tools because of BMW’s role in armaments manufacturing. From 1945 the BMW plants in Milbertshofen and Berlin mainly produced household appliances, as a temporary solution.
In October 1945 the US military government ordered the BMW plant in Munich and the “shadow plant” in Allach to be dismantled. Still largely intact, the equipment from the Munich plant was shipped to various locations around the world as reparations. BMW lost all power over its assets until 1949 – and over Allach until 1955.
BMW’s first product after 1945 was the R 24, unveiled in March 1948. An enhanced version of the pre-war R 23, the one-cylinder model suffered from production delays as materials and machinery were in short supply. Series production finally began in December 1948. The R 24 exceeded all expectations, with 9,144 units sold in 1949 alone.
BMW unveiled its first car of the post-war era: the BMW 501. Built from 1952 onwards, this model was powered by an enhanced version of the pre-war six-cylinder in the BMW 326. It seated up to six people and was a luxury automobile – but enjoyed only limited commercial success. Nonetheless, it restored BMW’s status as a manufacturer of high-quality cars with advanced technologies.
1959 – BMW escapes takeover.
As the 1950s progressed, BMW AG’s position became increasingly precarious. In late 1959 Daimler-Benz submitted an offer to turn the company around, subject to a limited time for acceptance. At the Annual General Meeting on 9 December, however, small shareholders and the workforce rejected the offer. Instead, Herbert Quandt expanded his stockholding, motivated by the perseverance of the workforce and by his own confidence in the company. With temporary financial support from the government, Quandt was able to turn BMW around the following year.
The Frankfurt Motor Show (IAA) saw BMW unveil the BMW 1500, designed to fill a gap in the market. Finally, BMW had made the breakthrough, establishing itself as a successful, contemporary carmaker. The design of the compact, sporty, mid-size four-door immediately caused a sensation, and orders far exceeded production capacity.
By the mid-1960s, the BMW plant in Munich was reaching the limits of its capacity. While plans were underway to build a new facility, the Dingolfing-based carmaker Hans Glas GmbH succumbed to its latest crisis, allowing BMW to take over and restructure the facilities in Dingolfing and Landshut. Over the successive decades, Dingolfing became BMW’s largest plant worldwide – and remained so for many years.
Meanwhile, back in Munich, BMW desperately needed more space for its growing car production. So motorcycle production was relocated to Berlin-Spandau. When production was launched in the early 70s, BMW presented a series of new models. The /5 Series was the first BMW motorcycle to be manufactured entirely in Berlin.
To mark the 60th birthday of major shareholder Herbert Quandt, BMW AG established a foundation in his honour. The organisation earned a global reputation for fostering transatlantic experience and knowledge sharing. At the end of the Cold War, it also became an important platform for east-west relations and pan-European understanding.
BMW Kredit GmbH was set up as a new subsidiary to finance the transactions of BMW AG and, above all, of its dealerships. With time, it became the foundation for the company’s growing finance and leasing activities – which remain a crucial element in its business to this day.
Plant Rosslyn, near Pretoria, was the first foreign plant of what is now known as the BMW Group. Established previously by the local importer, the facility was taken over in 1972. It had been assembling the Glas 1800 SA since 1967 and later produced the BMW 200 SA. After considerable investments, production of the BMW 3 Series was launched at the beginning of 1984.
BMW consolidated its motorsport activities in a single company – BMW Motorsport GmbH – which reaped countless motorsport successes and became the foundation of what is now BMW M GmbH. The organisation also played an active role in manufacturing high-performance BMW models.
1973 – BMW builds iconic HQ and BMW Museum.
Construction of the new administrative building in the north of Munich had begun in 1970. Thanks to its distinctive four-cylinder shape, the new headquarters soon became a notable landmark for both the company and the city. Alongside it, the BMW Museum was added – a bowl-shaped building that also remains unique to this day. The new complex was officially opened on 18 May 1973.
At the instigation of sales director Bob Lutz, BMW began to implement a policy of reclaiming sales responsibility from importers in all its major markets and gradually transferring it to dedicated subsidiaries. First to receive its own sales organisation was France, in 1973, followed by many more countries over the next few years, turning the BMW Group into a true multinational.
The engine manufacturer BMW Steyr Motoren Gesellschaft was established as a joint venture between BMW AG and Steyr-Daimler-Puch AG. Its factory was built to plans by BMW AG in Steyr, Upper Austria. In 1982 BMW assumed sole responsibility for the plant, rebranding it BMW Motoren GmbH. One year later the first diesel engine rolled off the production line. Today Steyr is the BMW Group’s centre of excellence for diesel technology.
BMW Technik GmbH was founded as a thinktank. Free from the constraints of series development, it was home to some of BMW’s top designers, engineers and technicians. Removed from the routine of everyday operations, they developed ideas and concepts for BMWs of tomorrow. One of BMW Technik GmbH’s first major projects was the Z1 Roadster, which entered series production in 1988.
To meet growing demand for the BMW 3 Series and take the pressure off Munich, the decision was taken on 26 November 1982 to establish a new plant in Regensburg. In 1984 the foundation stone was laid, and Plant Regensburg opened for business in 1987. It continued to expand in the years that followed.
1990 – BMW Research and Innovation Centre:
Thinktank with a difference.
In 1986 BMW AG became the first carmaker to centralise all its R&D under a single roof. The Research and Innovation Centre – known by employees as the FIZ – accommodated an integrated team of around 7,000 scientists, engineers, designers, managers and technicians. It officially opened on 27 April 1990. In 2004 the complex was expanded, with the addition of the Projekthaus. This was planned according to the principles of “constructed communication”. It was built in the space of two years and has a footprint of 12,000 m2. The nine-story building has an open gallery-style layout with an atrium. Its offices, studios and meeting rooms form the new heart of the FIZ.
To underscore BMW AG’s position as a global player, the decision was taken in 1989 to build a car plant in the US. In 1994 Plant Spartanburg, in South Carolina, opened for business, designed specifically to produce the BMW Z3 roadster for export worldwide. By the late 1990s, production had expanded, and today Spartanburg makes the BMW X3, X4, X5 and X6 models.
In early 1994 the Board of Management, supported by the Supervisory Board, took the decision to acquire the UK’s Rover Group – home to distinguished brands with a long heritage, such as Land Rover, Rover, MG, Triumph and MINI. BMW quickly set about integrating it into the BMW Group but found itself unable to meet ambitious expectations, despite strenuous efforts. As conditions deteriorated, in 2000 BMW AG sold the Rover Group, keeping only the MINI brand.
1998 – Rolls-Royce.
In July 1998, BMW acquired a piece of automotive history. Following long negotiations, the company obtains the brand and naming rights for Rolls-Royce motor cars from Rolls-Royce plc. Rolls-Royce is held entirely by Volkswagen until the end of 2002, when BMW takes on full responsibility for Rolls-Royce Motor Cars, along with all rights. The new Rolls-Royce plant and a new company headquarters are built in Goodwood, in southern England. This is the sixth facility constructed since 1904, scheduled to manufacture newly developed Rolls-Royce models from the start of 2003.
On 10 January 1999, BMW revealed a new vehicle concept to the world. Unveiled at the Detroit Auto Show, the BMW X5 offered an unprecedented combination of BMW’s hallmark dynamics and sporting ability combined with all the qualities of a four-by-four off-roader. A new market segment was established.
Established in 2000 in honour of Eberhard v. Kuenheim, the foundation fosters entrepreneurial thinking and action beyond the context of business, developing and testing new solutions to contemporary social issues in education, work and sustainability. In his almost 30 years at BMW AG Eberhard v. Kuenheim left his mark on the company as Chairman of the Board of Management, and later as Chairman of the Supervisory Board. Under his leadership, BMW AG evolved from a traditional medium-sized car and motorcycle producer to a prestigious global brand.
The strategic realignment of 2000 was designed to strengthen the BMW Group for the future. With its BMW, MINI and Rolls-Royce brands, the company would now focus exclusively on the global premium segment, expanding the model range with new series and variants. The decision was taken to introduce further Sports Activity Vehicles in the form of X models, as well as the BMW 1 Series (launched in 2004). In 2001 the BMW Group relaunched the MINI brand, and in 2003 it took over brand responsibility for Rolls-Royce Motor Cars.
After the sale of the Rover Group in 2000, the BMW Group held on to the upgraded car plant in Oxford, the new engine plant in Hams Hall and the new press shop in Swindon. In 2001 MINI production was launched in Oxford, initially with planned annual output of 100,000 units. Owing to strong global demand, however, annual output had more than doubled by 2007, totalling 230,000 units.
First unveiled as a concept car in 1997, the new MINI was launched by the BMW Group in 2001 – the first premium vehicle in the small-car segment. MINI’s advanced design combined with the athletic, cheeky character expressed the lifestyle of an entire generation. The MINI Hatch was the first in 2001 – with many more model variants to follow.
The BMW Group opened its new Rolls-Royce plant in the parklands of Goodwood House, West Sussex, on the south coast of England. The first model to leave the halls was the new Rolls-Royce Phantom. Each Phantom is entirely custom-made.
Rolls-Royce finally unveiled the new Phantom after years of intensive development work. The new model featured all the classic Rolls-Royce design features – such as the brand’s unique proportions, radiator grille and coach doors – but with a contemporary twist. Made of high-quality materials, it incorporated state-of-the-art technologies. The embodiment of traditional Rolls-Royce values, it came to symbolise the successful relaunch of the marque. In September 2009 the new Rolls-Royce Ghost heralded the arrival of a second model family, with an authentic but less formal take on the classic Rolls-Royce values. In 2013 Wraith became the most powerful and dynamic Rolls-Royce of all time.
With the BMW 1 Series, BMW’s hallmark driving dynamics and premium quality entered the compact class for the very first time.
The joint venture BMW Brilliance Automotive Ltd was founded with a Chinese partner in 2003 for production, sales and customer care for BMW vehicles. Its first plant – Plant Dadong in Shenyang – opened in May 2004, exclusively serving the local market. Its second plant in Shenyang, Plant Tiexi, opened in 2012.
BMW Group Plant Leipzig was officially opened in May. Initially designed for daily output of 750 vehicles over the medium term, the plant would provide 5,500 jobs at full capacity. The architectural centrepiece is the main building, designed by Zaha Hadid and awarded the German Architecture Prize in 2005. Leipzig currently manufactures the BMW 1 Series, BMW 2 Series Convertible and Coupe, and the BMW 2 Series Active Tourer. From 2013 it also made the BMW Group’s first fully electric series-production model – the BMW i3, which was followed in 2014 by the BMW i8.
Situated to the west of the iconic “four-cylinder” headquarters, BMW Welt was opened in October. It was designed by Vienna’s Coop Himmelb(l)au architects and forms the portal to the brand and also serves as the delivery centre for BMW vehicles. In combination with the plant tour and the BMW Museum, the progressive structure offers an all-round BMW experience, presenting the past, present and future of the brand.
Adopted in the autumn, Strategy Number ONE rested on four key pillars: Growth, Shaping the Future, Profitability, and Access to Technology and Customers. In a changing environment, the BMW Group intended to focus on profitability and long-term value increase – technologically, structurally and culturally. Strategy Number ONE set a clear strategic goal for 2020: to become the world’s leading provider of premium products and services for individual mobility.
DriveNow was launched by BMW in conjunction with Sixt AG as an innovative car-sharing and contemporary mobility concept. Initially available in Munich only, it soon spread to other cities such as Berlin, Hamburg and San Francisco. The service was provided under the BMW Group’s new sub-brand, BMW i.
2013 – BMW i3 is launched.
The BMW i3 took the BMW Group into a new era of electric mobility. Presented by the BMW i sub-brand, it was the first series-produced fully electric model by the BMW Group. It offered a completely new driving experience coupled with captivating agility and joy. Sustainability in its most electrifying form!
To enter the highly competitive, price-sensitive sub-500 cc segment, BMW Motorrad teamed up with the TVS Motor Company, based in Chennai, India. The BMW G 310 R was designed to encapsulate all the traditional values of the brand – dynamism, comfort, superior ergonomics and easy handling – and feature an all-new single-cylinder 313 cc engine delivering 34 hp. The design of the bike clearly referenced its larger sister model, the BMW S 1000 R. With technology that complied with all the international technical standards, the bike would be aimed at markets across the globe, especially in Asia and South America.
The BMW G 310 R finally took BMW Motorrad into a new segment: sub-500 cc. With its single-cylinder four-stroke engine, lightweight design and powerful dynamics, it embodied the essence of BMW roadster bikes. Its all-new engineering was explicitly geared towards the global market, allowing for different fuel qualities while meeting all the emissions standards. With its extraordinary fuel efficiency and relaxed seat position, it was perfect for longer rides.
Individual premium mobility by the BMW Group continues to be a driving force for change in the automotive industry. Going forward, Strategy NUMBER ONE > NEXT set a clear direction, focusing on people and the environment. Over the years that followed, the BMW Group concentrated on expanding its technological skills base, increasing digital connectivity between people and vehicles, developing its vehicles and services and redoubling its efforts around sustainable mobility.
The BMW Group celebrated its centenary under the motto The Next 100 Years. As well as looking back on its successful history, festivities focused very much on the future – which the BMW Group will continue to shape. The company presented its vision for the coming century in four dedicated Vision Next 100 concept cars – one for each of its four brands: BMW, MINI, Rolls-Royce and BMW Motorrad.
San Luis Potosí launched production with BMW’s most successful model series yet: the BMW 3 Series Sedan. It also manufactures the BMW 2 Series Coupe and BMW M2. The BMW Group has invested approx. $1 billion in the site, creating 2,500 jobs.
The BMW iX3 was the first fully electric X model, manufactured with a more sustainable value chain than any other electric car. Thanks to its all-new BMW eDrive, it was also 30 percent more powerful than any other electric BMW so far. With zero local emissions, it also offered a comfortable premium interior and a host of new digital services.
The R 18 follows the technical and design footsteps of historical BMW motorcycles more closely than any other BMW Motorrad bike. Inspired by famous predecessors such as the BMW R 5, its purist technology and boxer engine are the central elements, offering sheer riding pleasure within a compelling overall concept.
Germany remains a key development base for the BMW Group, and its Research and Innovation Centre (FIZ) in Munich is continually expanding. As one of the largest R&D facilities in the whole of Europe, it offers 150,000 m2 of space in which BMW Group specialists develop hardware and software for the company’s future vehicles.
The BMW Group has ambitious goals. By 2030 fully electric vehicles are expected to account for 50 percent of its sales – and the BMW iX is the next step towards achieving that. The technology flagship combines zero local emissions with sheer driving pleasure and extensive range. It also offers significant potential for innovations in automated driving, operations, connectivity and digital services.
At the BMW Group circularity is fundamentally important – and embodied in the compact BMW i Vision Circular. Optimised for closed material cycles, the i Vision Circular is made of 100 percent recycled and/or recyclable materials. The all-electric four-seater stands for the BMW Group’s ambitions to become the most sustainable manufacturer of premium individual mobility solutions.
In 2022, the BMW Group announced the start of production of the Neue Klasse in 2025. The Neue Klasse is not only a model series, but also innovative, visionary, and forward-looking. Thus, the company is preparing for an all-encompassing leap in technology. Amongst other innovations, the Neue Klasse will adopt a completely new all-electric drive with lower mileage and higher range. The self-developed new generation of battery cells and further innovations are additionally speeding up the ramp-up of electromobility.
Ever since the BMW i3 was launched in 2013, the array of electrified vehicles offered by the BMW Group has been steadily expanding. In 2022, customers could choose from a selection of eleven fully electric variants across eight model ranges, creating the broadest such product portfolio in the premium segment. What makes electrification at the BMW Group special is that the electric drive systems are developed and produced in-house. Indeed, the electric motors and high-voltage batteries offer myriad ways for the brand to put its unique stamp on a vehicle – as BMW combustion engines have done traditionally. BMW electric drive systems stand out from the crowd through the absence of rare-earth metals used in their manufacture, their high level of efficiency and the trailblazing advances made in reducing CO2 and increasing sustainability in the supply chain.
2025 – Debut of the first Neue Klasse model.
The new BMW iX3.
This content was created using AI.
This content was created using AI.
In September 2025 the BMW Group heralded a new chapter in its history with the debut of the new BMW iX3 at the IAA Mobility in Munich. As the first production model of the Neue Klasse, the iX3 brings a new era of Sheer Driving Pleasure to the road. The fully electric BMW iX3 50 xDrive combines sixth-generation BMW eDrive technology with a range of 805 km (WLTP) and peak charging capacity of 400 kW. As part of the new electronics architecture, the central control unit – called the Heart of Joy – comprises four high-performance computers, known as Superbrains. Together with the intuitive BMW Panoramic iDrive, it stands for the modular innovation toolkit that will form the basis for 40 new models and updates by 2027.