Bayerische Motoren Werke AG (German for Bavarian Motor Works), usually known under its abbreviation BMW, is a German luxury vehicle, motorcycle, and engine manufacturing company founded in 1916. It is one of the best-selling luxury automakers in the world. The company is a component of the Euro Stoxx 50 stock market index. Headquartered in Munich, Bavaria, BMW owns Mini cars and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcars under the BMW Motorsport division and motorcycles under BMW Motorrad, and plug-in electric cars under the BMW i sub-brand and the “iPerformance” model designation within the regular BMW lineup.
BMW was established as a business entity following a restructuring of the Rapp Motorenwerke aircraft manufacturing firm in 1912 named Aerowerke Gustav Otto. After the end of World War I in 1918, BMW was forced to cease aircraft-engine production by the terms of the Versailles Armistice Treaty. The company consequently shifted to motorcycle production as the restrictions of the treaty started to be lifted in 1923, followed by automobiles in 1928–29.
The first car which BMW successfully produced and the car which launched BMW on the road to automobile production was the Dixi, based on the Austin 7 and licensed from the Austin Motor Company in Birmingham, England.
By the year 1958, the automotive division of BMW was in financial difficulties and a shareholders meeting was held to decide whether to go into liquidation or find an alternative. It was decided to carry on by trying to cash in on the current economy car boom exploited so successfully by German ex-aircraft manufacturers such as Messerschmitt and Heinkel. BMW bought the rights to manufacture the Italian Iso Isetta. BMW’s version of the tiny cars were to be powered by a modified form of BMW’s motorcycle engine. This was moderately successful and helped the company get back on its feet.
Since 1959, the controlling majority shareholder of the BMW Aktiengesellschaft has been the Quandt family, which owns about 46% of the stock. The rest is in public float.
BMW acquired the Hans Glas company based in Dingolfing, Germany, in 1966. Glas vehicles were briefly badged as BMW until the company was fully absorbed. It was reputed that the acquisition was mainly to gain access to Glas’ development of the timing belt with an overhead camshaft in automotive applications, although some saw Glas’ Dingolfing plant as another incentive. However, this factory was outmoded and BMW’s biggest immediate gain was, according to themselves, a stock of highly qualified engineers and other personnel. The Glas factories continued to build a limited number of their existing models, while adding the manufacture of BMW front and rear axles until they could be closer incorporated into BMW.
In 1992, BMW acquired a large stake in California-based industrial design studio DesignworksUSA, which they fully acquired in 1995. In 1994, BMW bought the British Rover Group (which at the time consisted of the Rover, Land Rover and MG brands as well as the rights to defunct brands including Austin and Morris), and owned it for six years. By 2000, Rover was incurring huge losses and BMW decided to sell the combine. The MG and Rover brands were sold to the Phoenix Consortium to form MG Rover, while Land Rover was taken over by Ford. BMW, meanwhile, retained the rights to build the new Mini, which was launched in 2001.
Chief designer Chris Bangle announced his departure from BMW in February 2009, after serving on the design team for nearly seventeen years. He was replaced by Adrian van Hooydonk, Bangle’s former right-hand man. Bangle was known for his radical designs such as the 2002 7-Series and the 2002 Z4. In July 2007, the production rights for Husqvarna Motorcycles was purchased by BMW for a reported 93 million euros. BMW Motorrad plans to continue operating Husqvarna Motorcycles as a separate enterprise. All development, sales and production activities, as well as the current workforce, have remained in place at its present location at Varese.
In June 2012, BMW was listed as the #1 most reputable company in the world by Forbes.com. Rankings are based upon aspects such as “people’s willingness to buy, recommend, work for, and invest in a company is driven 60% by their perceptions of the company and only 40% by their perceptions of their products.”