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Bayerische Motoren Werke AG

Bayerische Motoren Werke AG

Tagline

Sheer Driving Pleasure

Net Worth

$4,704,363,615

Started in (City)

Munich

Started in (Country)

Germany

Incorporation Date

07th December, 1916

Bankruptcy Date

-

Founders

  • Camillo Castiglioni
  • Franz Josef Popp
  • Karl Rapp

About

Bayerische Motoren Werke AG, popularly known as BMW is a German multinational company that produces luxury vehicles and motorcycles. The three letters (BMW) are symbolic of worldwide success. Just like everyone says, Great things happen only with great efforts. The Success of the company did not come easy; it experienced numerous challenges and setbacks. BMW has grown to be a leader through dedication, commitment to quality, and here is its story. Automobiles are marketed under the brands BMW, Mini, and Rolls-Royce, and motorcycles are marketed under the brand BMW Motorrad. In 2017, BMW was the world's fourteenth-largest producer of motor vehicles, with 2,279,503 vehicles produced. The company has significant motorsport history, especially in touring cars, Formula 1, sports cars, and the Isle of Man TT.

Beginning

BMWS origins can be traced back to three separate German companies- Rapp Motorenwerke, Bayerische Flugzeugwerke and Automobilwerk Eisenach. The history of the name itself begins with Rapp Motorenwerke, an aircraft engine manufacturer. In fact, the first product of the company was a straight-six aircraft engine called the BMW 3a. The luxury vehicle company was born from a struggling airplane engine company, even at one point making pots and pans. BMW’s founders were Franz Josef Popp, Karl Rapp and Camillo Castiglioni. The origin of BMW dates back to 1913 when Karl Rapp formed Rapp Motoren Werke in a suburb of Munich. Rapp found that the engines had problems and suffered excessive vibration, as a result, he contacted Auto Damier to build V12 Aero engines for aircraft. The company saw success and expanded rapidly. Eventually, Rapp resigned due to financial issues in 1916. At that time, two Austrians, Franz Josef Popp, and Maxx Friz took over the company. In March of that year, the company merged with another, Gustav Flugmaschinefabrik to form Bayerische Flugzeugwerke. Following the end of World War 1, BMW remained in business by producing motorcycle engines, household items, and railway brakes. Its first logo with its signature blue and white was created in 1917.

Road to Success

The company’s first motorcycle was the BMW R32 in 1923. The motorcycle set a world speed record that was not broken till 1932. The company already started making a name for itself, soon to be linked to greatness. It wasn’t until 1928, that automobiles became their business, the first car BMW sold was a rebadged Dixi named the BMW 3/15. This was after BMW’s acquisition of the car manufacturer Automobilwerke Eisenach. Throughout the 1930s, BMW expanded its range into sports cars and larger luxury cars. During World War 2, BMW built the world’s first jet airplane engines, used by Luftwaffe, the German air force. Aircraft engines, motorcycles, and automobiles would be BMW’s main products until World War 2. The 1962 introduction of the BMW New Class compact sedans was the beginning of BMW's reputation as a leading manufacturer of sport-oriented cars. Throughout the 1960s, BMW expanded its range by adding coupe and luxury sedan models. The BMW 5 Series mid-size sedan range was introduced in 1972, followed by the BMW 3 Series compact sedans in 1975, the BMW 6 Series luxury coupes in 1976, and the BMW 7 Series large luxury sedans in 1978.

Challenges

During the war, and against the wishes of its director Franz Josef Popp, BMW placed emphasis on aircraft engine production, with motorcycles as a sideline and ceasing automobile production completely. Due to the bombing of the factories, its remaining West German facilities were banned from producing motor vehicles or aircraft after the war. The company bounced back and shifted gears to produce pans, pots, and bicycles. In 1948, BMW restarted motorcycle production and car production in 1952. In 1951, BMW produced its first car since the war, a large saloon vehicle. The car was designed for the luxury market, but it was not successful. It instead paved the way for BMW to re-establish its reputation as a leader in the area of technology and quality. It went on to expand its automobile range in 1955. Moving into the small car market was a challenge that pushed the company to the brink of bankruptcy and it was nearly taken over by rival Daimler Benz. German entrepreneur Herbert Quandt made a large investment, acquiring a controlling interest in the firm, and BMW introduced its 700 series, soon followed by the equally successful 1500 model. It was around the same time, the company introduced a new series of motorcycles that were particularly popular in the United States and still are today.

Failures

In November 2016, BMW recalled 136,000 2007–2012 model year U.S. cars for fuel pump wiring problems possibly resulting in a fuel leak and engine stalling or restarting issues. In 2018, BMW recalled 106,000 diesel vehicles in South Korea with a defective exhaust gas recirculation module, which caused 39 engine fires. The recall was then expanded to 324,000 more cars in Europe. Following the recall in South Korea, the government banned cars that had not yet been inspected from driving on public roads. This affected up to 25% of the recalled cars, where the owners had been notified but the cars had not yet been inspected. BMW is reported to have been aware since 2016 that more than 4% of the affected cars in South Korea had experienced failures in the EGR coolers, leading to approximately 20 owners suing the company.

Achievements

  • BMW 330e Sedan named as “Best Executive Car”
  • Best Plug-in-Hybrid
  • Electric Car Award
  • BMW 1 Series was given the title of “Premium Lower Medium Car of the Year” by British publication “Company Car Today"
  • BMW M140i was voted “Best Used Hot Hatch” of the year.
  • The new BMW 2 Series Gran Coupé was anointed the “Most Beautiful Car of the Year”.

Subsidies

  • BMW Manufacturing Co., LLC
  • BMW of North America, LLC
  • BMW
  • The BMW Group Inc
  • Bayerische Motoren Werke AG
  • BMW BANK OF N AMER
  • BMW Floorplan Master Owner Trust
  • BMW Vehicle Lease Trust 2009-1
  • BMW Financial Services NA, LLC

CEOs

  • Harald Krüger