Although BMW's current fame and reputation as one of the greatest 
automobile manufacturers can be mostly linked to models produced in the 
last two decades, the history of the marque stretches back almost 90 
years and contains numerous achievements that have established it as a 
benchmark.
The origins of BMW trace back to 1913 when 
Karl Friedrich Rapp, a Bavarian who had been a well-known engineer in a 
German aircraft company, formed Rapp Motoren Werke in a suburb of 
Munich. The company specialized in airplane engines however Rapp found 
that they were problematic and suffered from excessive vibration. 
Nearby, Gustav Otto, also an airplane specialist, set up his own shop, 
Gustav Flugmaschinefabrik, building small aircraft.
Because
 of the faulty engines, Rapp Motoren Werke secured a contract with 
Austro-Daimler, who was unable to meet its demands, to build V12 Aero 
engines under license. The company expanded too quickly, however, and by
 1916 Rapp resigned from the company because of financial troubles. In 
his place Franz Josef Popp and Max Friz, two Austrians, took over the 
company. In March that same year, Rapp Motoren Werke merged with Gustav 
Flugmaschinefabrik to form Bayersiche Flugzeungwerke. It was shortly 
afterwards renamed Bayersiche Motoren Werke (Bavarian Motor Works), or 
BMW, forming the company we know today.
In 1917, BMW's 
first aircraft engine went into production, the 6 cylinder Type IIIa. In
 1919, using an aircraft powered by its successor, the Type IV, Franz 
Zeno Diemer set an altitude record of 9,760 metres (32,013 ft). After 
the Treaty of Versailles was signed in the same year, prohibiting BMW 
from building aircraft engines, production switched to air brakes for 
railway cars. When BMW started once again to build aircraft engines in 
1922, no fewer than 29 world records in aviation were set with them. The
 current BMW logo, introduced in 1920, was based on the circular design 
of an aircraft propeller.
The first BMW motorcycle, the
 R 32, went into production in 1923 at the newly constructed Eisenach 
factory next to the Munich airport of the day. The R 32 used a flat-twin
 engine transversely mounted in a double-tubular frame producing 8.5 
horsepower at 3300 rpm. The 2-cylinder 494cc motorcycle could reach a 
top speed of 59 mph (95 km/h). BMW manufactured 3090 of them during its 3
 year life span.
It was 1928 that made history in terms
 of the BMW car. Produced at the Eisenbach factory, the Dixi 3/15 PS 
marked the beginning of BMW automobile production. It was built under 
license from Austin and was essentially the same model as the US Bantam 
and the Japanese Datsun. The first Dixis used an open roof and were 
powered by a 743cc 4 cylinder engine producing 15 horsepower. Top speed 
was in the neighbourhood of 50 mph (80 km/h). In 1929 a new improved 
version was launched, the DA2, which employed an all-steel body and 
4-wheel brakes, and in 1930 the Dixi scored its first wins in motor 
racing. Total production: 18,976 units.
1932 was the 
year the BMW AM 4 (Ausfuhrung Munchen 4 Gange - Munich Version 4 Speeds)
 - a.k.a. BMW's first "real" car - went into production. The AM 4, also 
called the 3/20 PS, was the successor to the Dixi and the first 
production car to be built entirely in-house by BMW. The powerplant was a
 782cc 4 cylinder unit which featured suspended valves and a double 
chain driving the camshafts, producing 20 horsepower at 3500 rpm and 
providing the saloon with a 50 mph top speed.
The next 
year mark ed the introduction of the 303 saloon and the first BMW 
inline-six cylinder power unit, a configuration that remains BMW's 
typical choice even in contemporary cars. The 303 was also the first BMW
 to use the twin-kidney shaped radiator grilles, another cur rent 
trademark. Using a welded tubular steel frame, independent front 
suspension and rack and pinion steering, the 303 was a benchmark in 
technological achievements. Its 1173cc engine provided 30 horsepower and
 a top speed of 56 mph (90 km/h).
3 years later, in 
1936, the BMW 328 was introduced. It was the most popular and remains 
BMW's most famous pre-war sports car, the successor to the 315/1 
(1934-36). The 328 was built mainly for motor sport, where it proved 
itself successful by winning the Mille Miglia in Italy in its class in 
1938, but quickly became a popular road car as well. A curb weight of 
only 1830 lb was achieved through the use of an extra-light tubular 
spaceframe and light alloy parts for the hood, doors and tail end. Using
 a 1971cc inline-6 cylinder engine with three carburettors that produced
 a healthy 80 horsepower at 5000 rpm, the 328 could reach a maximum 
speed of 93 mph (150 km/h). 462 units of this classic were produced in 
total.
In 1935 BMW entered the record books once again,
 this time on two wheels. Riding a streamlined 500cc compressor machine 
developing 108 hp and an amazing power-to-weigh ratio (282 lb curb 
weight), Ernst Henne set a world speed record for motorcycles of 173.7 
mph (279.5 km/h) in 1937. It stood for nearly two decades.
BMW's
 success was unfortunately short lived. After the Second World War, the 
company lay in ruins. Its factories had been destroyed or dismantled and
 a three-year ban on any production activities was imposed by the Allies
 in response to the production of aircraft engines and rockets by BMW 
during the War. The first post war model, the V8 equipped 501 luxury 
sedan produced in 1951 was a poor production choice for a country that 
was also devastated by the war. Demand was low and the 501 did not even 
com e close to meeting BMW's expectations.
It was a 
totally different approach that started to bring BMW back on its feet. 
In 1955, the Isetta 250 was launched and participated very successfully 
in the mini-car era of the 1950's. It was built under license from the 
Italian manufacturer Iso and used a motorcycle engine and a single door 
at the front. The engine was a single cylinder 245cc unit producing 12 
horsepower at 5800 rpm and a top speed of 53 mph (85 km/h). During its 7
 year production run a total of 161,728 Isettas were built.
A
 couple of years later, with BMW still having no secure financial 
foothold, one of the most memorable models in its history was 
introduced. Launched in 1956, the BMW 507 quickly became famous. The 
light-alloy 2-door bodyshell with a retractable soft top, designed by 
Alberecht Graf Foertz, has remained timeless as evidenced by the newly 
introduced Z8, which draws unmistakable clues and its overall shape from
 it. A large 3168cc V8 engine using dual downdraught carburettors 
powered the 507 and provided 150 horsepower at 5000rpm, enough for an 
impressive 124 mph top speed (200 km/h) but not enough to topple its 
main rival, the Mercedes 300SL. While only 252 examples of the instantly
 recognizable 507 were ever produced, it remains a symbol of BMW's 
struggles and ultimate triumphs during the fifties after the end of the 
War.
The next step in BMW's evolution and the 
predecessor to the cars we know today was launched in 1962. The 1500, 
which had been developed during the crisis of the '50s, was another of 
BMW's saviors. The excellent suspension and striking design for its 
time, employing a low waistline with a low-slung engine compartment and 
rear lid characterized the 1500. A 1499cc 4-cylinder engine producing 80
 horsepower at 5700 rpm and providing a top speed of 92 mph (148 km/h) 
powered it. During its two year production run sales amounted to only 
23,807 units; however between all of the models in its range 
(1500,1600,1800,2000) production totaled 334,165 cars. Based on these 
cars, the first generation 5 series, the E12, was launched 10 years 
later in 1972. The 3 series was introduced 3 years later and the 7 
series 2 years after that, in 1977.
In 1990 BMW re-entered the 
aircraft engine manufacturing business after forming BMW Rolls-Royce 
GmbH jointly with Rolls Royce. In 1998, after extended talks concerning 
the sale of Rolls Royce, BMW officially bought the rights to the Rolls 
Royce name and logo from Volkswagen, with the transition expected to 
take place in 2003. 1994 brought about another purchase, as BMW acquired
 the Rover Group PLC.
After heavy losses, the company 
was finally sold in 2000, with Rover being split up from Land Rover 
which was purchased by Ford. BMW held the rights to the new Mini and the
 hot-hatch goes on sale in early 2002. 
Today, the Z3, Z8 and all 
of the 3, 5, 7 and Motorsport series models continue the BMW tradition 
of building excellent automobiles with a special emphasis on 
performance, style and technological advancements. 1992 was another 
year-to-be-remembered for BMW when it, for the first time, outsold 
Mercedes in Europe. Hopefully in the future the rivalry between these 
and other makes will persist and companies such as BMW will continue to 
build great cars.
Source: www.fantasycars.com 
 

 
 
 
 
 
 
 
 
 
 
 
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