BMW

BMW AG (an abbreviation for Bayerische Motoren Werke AG, or in English, Bavarian Motor Works), is a German company and manufacturer of automobiles and motorcycles. BMW is the parent company of the Mini and Rolls-Royce car brands, and, formerly, Rover. In German, the acronym BMW is pronounced "b:eh - emm - v:eh". In North America and some other regions, BMW cars are sometimes referred to as "bimmers," often pronounced "beemers," which is technically incorrect as "beemer" refers to BMW motorcycles. The company's slogans in English are "The Ultimate Driving Machine" (mainly used in the USA) and "Sheer Driving Pleasure".

History

Pre-WWII

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 circular logo BMW still uses (illustrated above right) is a stylized spinning aircraft propeller, and dates from this period in the company's history.

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 1927 the tiny Dixi, an Austin Seven produced under licence, began production in Eisenach. BMW bought the 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 inline 6-cylinder sports and saloon cars. The pre-war cars culminated in the beautiful 327 saloon and 328 roadster, fast 2-litre cars, both very advanced for their time.

World War II

BMW motorcycles, specifically the BMW R 12 and the BMW R 75 combination were used extensively by the Reconnaissance formations of German panzer and motorised divisions of the Heer, Waffen SS and Luftwaffe.

BMW was also a major supplier of engines to the Luftwaffe and of engines and vehicles, especially motorcyles, to the Wehrmacht. The aero-engines included the 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 laborers during this period, consisting of both inmates of infamous concentration camps such as Dachau and prisoners of war.

The BMW works were heavily bombed towards the end of the war. Of its sites, those in eastern Germany (Eisenach, Dürrerhof, Basdorf and Zühlsdorf) were seized by the Soviets. The factory in Munich was largely destroyed.

Aftermath of WWII

After the war the Munich factory took some time to restart production in any volume. BMW was banned from manufacturing for three years by the Allies and did not produce a car model until 1952.

In the east, the company's factory at Eisenach was taken over by the state-owned Awtowelo group. That company offered "BMWs" for sale until 1951, when the Bavarian company prevented use of the trademarks: the name, the logo and the "double-kidney" radiator grille.

The cars were then branded EMW (Eisenacher Motoren Werke), production continuing until 1955.

In the west, the BAC, Bristol Aeroplane Company, inspected the factory, and returned to Britain with plans for the 326, 327 and 328 models. These plans, which became official war reparations, along with BMW engineer Fritz Fiedler allowed the newly formed Bristol Cars to produce a new, high-quality sports saloon, the 400 by 1947, a car so similar to the BMW 327 that it even kept the famous BMW grille.

Post-war history

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 bubble 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 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 cubic cm 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 coupés that replaced the CS and the M1, were also added to the mix as the market demanded.

"The English Patient"

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 Rover passenger car range, the Mini, Land Rover and Range Rover, plus historical names such as Triumph, into 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, Land Rover and Range 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 Consortium for a nominal £10 and Land Rover and Range 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 Mini and Triumph marques. Mini has been a highly successful business, though the Triumph name has not been used.

Redesign Controversy

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.

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 came to be.

Production outside Germany

BMW started producing automobiles at its Spartanburg, 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 2003, 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.

Rolls-Royce

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 bought the company for £430 million, but BMW outflanked its German rival by acquiring the Rolls-Royce trademark for cars for a fraction of the price (£40 million).

Volkswagen was permitted to build Rolls-Royces at its Crewe factory until 2003 but shifted most of its marketing emphasis to Bentley.

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.

Models

Current and near future products

The current BMW model line-up 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 coupes 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 and M5 are based respectively on the 3 and 5 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 capitalise 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.