BMW Group traces its origins to 1916 with the founding of Bayerische Flugzeugwerke (Bavarian Aircraft Works) in Munich, which produced aircraft engines for the German military during World War I. The company was reorganized and renamed Bayerische Motoren Werke GmbH (Bavarian Motor Works) in 1917, with the BMW name and the distinctive roundel logo derived from the Bavarian state colors of blue and white.
Following World War I, the Treaty of Versailles prohibited Germany from producing aircraft engines, forcing BMW to pivot. The company began producing motorcycle engines in 1923, introducing the R32, its first complete motorcycle, at the Paris Motor Show. The R32 established BMW's reputation for engineering innovation and became the template for BMW motorcycle design for decades.
BMW entered the automobile market in 1928 by acquiring Fahrzeugfabrik Eisenach, which produced the Dixi car under license from Austin of England. The company's first independently designed automobile, the BMW 303, was introduced in 1933 and featured the iconic twin-kidney grille that remains a BMW design signature today. Through the 1930s, BMW established itself as a manufacturer of premium automobiles and set numerous speed records with its racing cars.
During World War II, BMW produced aircraft engines and motorcycles for the German military and, like many German industrial companies, used forced labor from concentration camps. The company has acknowledged this history. After the war, BMW's factories were damaged or dismantled by Allied forces, and the company faced severe financial difficulties through the late 1940s and 1950s.
The company's survival was secured in 1959 when Herbert Quandt, a German industrialist, invested in BMW and prevented a takeover by Daimler-Benz. Quandt's investment, and the subsequent success of the BMW 1500 "New Class" sedan introduced in 1962, transformed BMW into a profitable premium automobile manufacturer. The New Class established the formula of sporty, driver-focused premium sedans that became BMW's defining product philosophy.
BMW expanded its model range through the 1970s and 1980s with the introduction of the 3 Series (1975), 5 Series (1972), and 7 Series (1977), which became the core of BMW's lineup and remain in production today. The company also established manufacturing operations in South Africa (1973) and the United States (Spartanburg, South Carolina, 1994).
In 1994, BMW acquired the Rover Group, a British automotive conglomerate that included the Rover, Land Rover, MG, and Mini brands. The acquisition proved difficult to integrate, and BMW sold most of the Rover Group in 2000, retaining only the Mini brand and the Rolls-Royce name rights. BMW acquired the rights to produce Rolls-Royce automobiles from Volkswagen Group in 1998 and began producing Rolls-Royce cars at a new factory in Goodwood, England, in 2003.
The revived MINI brand, launched in 2001 with a new model designed by BMW, became a significant commercial success, establishing BMW Group's presence in the premium compact segment. MINI is produced primarily at the Oxford plant in England and has expanded into a family of models including the Clubman, Countryman, Convertible, and Paceman.
Oliver Zipse became Chairman of the Board of Management in August 2019, succeeding Harald Krueger. Zipse has led BMW Group's electrification strategy, which emphasizes offering customers a choice of powertrains rather than a rapid transition exclusively to battery electric vehicles.