BMW is an acronym for Bayerische Motoren Werke, or Bavarian Motor Works in English. Some confusion has arisen over the years that it may stand for British Motor Works but this is certainly not the case.

BMW officially came into existence on 21st July, 1917, but in reality it was nothing more than a name change. Karl Rapp had founded one of the earliest aero-engine manufacturers, Repp Motorenwerke, along with Julius Auspitzer. By 1917 a brilliant engineer, Max Friz, had demonstrated his talent for engine design, and previous designer Rapp had his contract terminated. Obviously it made little sense to have a company named after an ex-employee and so it was changed.

To begin with BMW concentrated their efforts on aero engines and motorcycles. It was not until 1929 that they turned their attention to cars. Pre- World War II the company flourished, receiving large subsidies from the Nazi party. Following Germany's defeat in the war things were very different. Substantial bomb damage and restrictions on what they could produce, placed on them by the Allies, threatened the company's existence. An agreement was made where BMW would be allowed to start manufacturing agricultural equipment, bicycles and spare parts. In return they had to repair US army vehicles.

A further threat to the company came in 1959 when Daimler-Benz proposed a takeover. The company refused and, with new factories having to be constructed to cope with demand in the sixties, their decision was justified. An enormous new Berlin plant was opened in 1984, followed by a Research and Innovation centre.

In 1994 BMW were in a suitably powerful position to buy the Rover Group, but it proved to be a disastrous acquisition. BMW sold the company in 2000 for a nominal fee of 10, but they did retain the rights to the new Mini, which has since gone on to become one of the most popular cars of the decade.

BMW has a long and proud history in motor racing, covering many diverse categories of the sport. They have won titles in touring cars, sports cars, rallies and Formula 1, the latter as an engine supplier. Currently they operate their own Formula 1 team and have shown consistent improvement over the last few seasons suggesting that 2008 could bring their maiden victory as a manufacturer.

Their road cars have always been considered as being sporty and stylish. This is still the case today, with their sleek looks and distinctive rear-wheel drive handling characteristics. The company has been through a few hard times but now appears to be in better health than ever.

Sources:
Autocourse
The Nostalgia Forum
Wikipedia

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