Nishu Project

Introduction

BMW Group manufactures products under three brands: BMW, MINI and Rolls-Royce Motor Cars. As a worldwide organisation, BMW Group has a long and established heritage of manufacturing premium products. This section offers an overview of the Company.

BMW Group headquarters is located in Munich at D-80778, Munich, Germany .

In 1973, the Viennese architect Karl Schwanzer revealed his design for BMW Group's head office the 'Four-Cylinder'. The building located next to Munich's Olympic Park, is considered an architectural masterpiece.

The corporate logo of BMW

The famous white and blue symbol of BMW stems from the company's origins as aeroplane engine manufacturers.

Many aircraft were painted in regional colours and those of the Bavarian Luftwaffe were the Bayern white and blue.

It is said that the pilot's view through the propeller was one of white and blue alternating segments.

Through the years this image has become stylised into solid quarters of blue and white to declare the identity of today's BMW cars and motorcycles. Since the end of the 1970s BMW has worked to create a standardised international image in terms of statement and

presentation so that today whenever people encounter the company's symbols they recognise BMW.

Bayerische Motoren Werke AG pronunciation (help·info) (English: Bavarian Motor Works), commonly known as BMW, is a German automobile, motorcycle and engine manufacturing company founded in 1917. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces Mini cars, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad. In 2010, the BMW group produced 1,481,253 automobiles and 112,271 motorcycles across all its brands. BMW is part of the "German Big 3" luxury automakers, along with Audi and Mercedes-Benz, which are the three best selling luxury automakers in the world.

The BMW Group strategy?

At the end of September 2007, BMW Group took on a new strategic direction. Up to the year 2020, BMW Group intends to strengthen its position within the global motor vehicle market by increasing sales to more than two million automobiles per year.

In addition to striving to grow its existing business, the BMW Group will develop new and profitable areas of activity. At the same time, the BMW Group will invest in future

The new strategy has been given the name Number ONE, standing for 'New Opportunities' and 'New Efficiency'. This means making the best use of new opportunities and becoming more efficient in order to ensure BMW Group's lead over competitors and to actively shape the company's future.

BMW Group's worldwide mission statement is:

"The mission statement up to the year 2020 is clearly defined: the BMW Group is the world's leading provider of premium products and premium services for individual mobility."

There are seven BMW Group sites in the UK:

 UK Distribution Centre, Thorne, Lincolnshire  BMW (UK) Ltd, Bracknell, Berkshire

 BMW Financial Services (GB) Limited, Hook, Hampshire  Rolls-Royce Motor Cars, Goodwood, West Sussex

 BMW Plant Hams Hall, near Birmingham  BMW Group Plant Oxford, Oxford  BMW Group Plant Swindon, Swindon  What are BMW Group brands?

 BMW Group manufactures automobiles and motorcycles worldwide to premium standards and outstanding quality for all its brands. BMW Group is committed to the very highest in quality for everything it is involved with.



BMW

The BMW brand stands for one thing: sheer driving pleasure. Sporting and dynamic performance combined with superb design and exclusive quality.

 MINI

The MINI brand wins hearts and turns heads. MINI is refreshingly different:

extroverted, spontaneous and in every respect something out of the ordinary. Ideal for a society that was young, unconventional and ready for change, the MINI Classic became a cult vehicle in the sixties and seventies. Since then the brand has lost none of its youthful charm. MINI is part of a lifestyle that is cosmopolitan and confident, ready for everything.

 Rolls–Royce Motor Cars

 Rolls-Royce Motor Cars has been part of the BMW Group since 1998 and trading started on January 1, 2003.

Rolls-Royce is one of the most fascinating and well-known brands in the world, the luxury motor car par excellence. For over 100 years, motor cars of the Rolls-Royce brand have stood for truly outstanding engineering, quality and reliability.BMW Group comprises:

 23 production and assembly plants in 13 countries  41 sales subsidiaries all over the world

 10 locations in the Research & Development network in five countries

Company Profile

Founded in 1917, the BMW Group is now one of the ten largest car manufacturers in the world and, with its BMW, MINI and Rolls-Royce brands, possesses three of the strongest premium brands in the car industry. The group also has a strong market position in the motorcycle sector and operates a successful financial services business. The company aims to generate profitable growth and above-average returns by focusing on the premium segments of the international automobile markets. With this in mind, a wide-ranging product and market offensive was initiated in 2001, which has resulted in the BMW Group expanding its product range considerably and strengthening its

worldwide market position. The company‘s brand is extremely strong and is associated with high performance, engineering excellence and innovation. Indeed, the BMW brand is often cited as one of the ‗best‘ in the world, and the company continues to launch a stream of innovative products as part of its battle with German peer Mercedes to be the world‘s largest luxury car maker.

B

BMW‘s focus on engineering excellence allied to leading-edge design continues to drive successful, profitable expansion. In 2007 BMW sales increased by 8%, Mini by 18% and Rolls-Royce by 26% with, for the first time ever, over 1000 of the super luxury cars being produced in one year. To further this growth, a host of new models is being launched, including the Mini Clubman and the new sport utility vehicle, the BMW X6 - the world‘s first SUV coupe. While the Clubman reinvents views on vehicle access, the X6 is an

excellent example of BMW innovation at work. It combines the safety and convenience of a four-wheel-drive with the on-road performance of a sports car and is designed to appeal to the driver who enjoys a commanding driving position, but also savours the characteristics of a sports car. With its stretched coupé silhouette and pronounced performance design,

underpinned by hybrid engine options, as previously achieved with the X5 and the X3 in allied markets, the X6 is the latest instance of BMW changing perceptions of what a car should provide – for its passengers and its driver alike. At its heart, it restates an aspiration for driving that is both exclusive and yet also available to the mass market.

BMW has also been at the forefront of introducing new IT options to enhance the driving experience. Starting with the iDrive first introduced in the 7-series, BMW ConnectedDrive is now available across most models and is adding greater functionaility. After being one of the first to offer the capability for MP3 connectivity and incorporate RSS feeds including

planning service. Of course this level of innovation does not come cheaply and a key challenge going forward will be to keep research and development costs under control. During the last five years, BMW‘s average annual R&D investment has been around €2,300 per car, compared with €1,700 spent by arch-rival Mercedes. Alongside the examples above, much of the money has gone into the car maker's Efficient Dynamics programme aimed at making engines more efficient, improving aerodynamics, reducing weight and capturing energy during braking. As the numbers clearly show, BMW is a mass market player but one that successfully uses focused innovation to build and maintain the aspirational driving experience for many. Through a constant stream of consumer informed innovations, the company has moved ahead of its peers and future sustained and profitable growth is widely predicted.

History

BMW was established as a business entity following a restructuring of the Rapp

Motorenwerke aircraft manufacturing firm in 1917. After the end of World War I in 1918, BMW was forced to cease aircraft engine production by the terms of the Versailles Armistice Treaty.[6] The company consequently shifted to motorcycle production in 1923, once the restrictions of the treaty started to be lifted,[7] followed by automobiles in 1928–29.[8][9][10] The first car which BMW successfully produced and the car which launched BMW on the road to automobile production was the Dixi, it was based on the Austin 7 and licensed from the Austin Motor Company in Birmingham, England.

BMW's first significant aircraft engine was the BMW IIIa inline-six liquid-cooled engine of 1918, much preferred for its high-altitude performance.[11] With German rearmament in the 1930s, the company again began producing aircraft engines for the Luftwaffe. Among its successful World War II engine designs were the BMW 132 and BMW 801 air-cooled radial engines, and the pioneering BMW 003 axial-flow turbojet, which powered the tiny, 1944– 1945–era jet-powered "emergency fighter", the Heinkel He 162 Spatz. The BMW 003 jet engine was tested in the A-1b version of the world's first jet fighter, the Messerschmitt Me 262, but BMW engines failed on takeoff, a major setback for the jet fighter program until successful testing with Junkers engines.[12][13]

By the year 1959, the automotive division of BMW was in financial difficulties and a shareholders meeting was held to decide whether to go into liquidation or find a way of carrying on. It was decided to carry on and to try to cash in on the current economy car boom enjoyed so successfully by some of Germany's ex-aircraft manufacturers such as

Messerschmitt and Heinkel. The rights to manufacture the Italian Iso Isetta were bought; the tiny cars themselves were to be powered by a modified form of BMW's own motorcycle engine. This was moderately successful and helped the company get back on its feet. The controlling majority shareholder of the BMW Aktiengesellschaft since 1959 is the Quandt family, which owns about 46% of the stock. The rest is in public float.

What are the key dates in the history of BMW?

Year Historic Information

1916 BMW formed under name Bayerische Flugzeug-Werke (BFW).

1917

Adopted BMW name and stylised propeller in blue / white segments, the colours of the Bavarian coat of arms.

As a result of war, the small company appreciated rapid growth.

1919 BMW IV six cylinder engine achieved a world record altitude of 9,760m

(32,000 ft).

1923 First BMW motorcycle, the R32 twin, is launched.

1928 BMW starts car manufacture. The first car was an Austin Seven built under

1929

Ernst Henne achieved a world motorcycle speed record of 134 mph on a BMW R37 (pictured).

1933

The 303 (pictured) was BMW's first car powered by a ‗six cylinder‘ engine (1.2 litres!). It also had the ‗kidney shaped‘ radiator grill - still a typical BMW motif.

1936 The legendary BMW 328 was presented and up to 1940 revolutionised the two litre

sport car.

1939 Schorsch Meier won the 1939 Senior TT with the Kompressor BMW.

1939/45

BMW produced the 132 and 801 radial engines for the Focke-Wulf 190 and the BMW 003 gas turbine engine - the first jet to fly in a combat aircraft (Arado 234 and Messerschmitt 262).

1945

BMW lost its Eisenach car plant to the Russian sector. Its Munich plant was heavily damaged (with all worthwhile machinery taken as war reparation). The company ‗survived‘ making pots and pans, spades and bicycles.

1947 Designs for the first post-war BMW motorcycle were ready.

1948 BMW built its first post-war car - BMW 501 six cylinder.

1954

BMW built the 502 V8 (pictured) - Germany's first post-war V8 and takes a licence to build the Isetta 'bubble car'.

1956

BMW launches the 507 (pictured) and 503 four seat convertible and coupe.

1959 BMW in financial crisis. On the brink of being taken over by Daimler-Benz, small

shareholder opposition resisted a 'yes' vote.

1962

The ‗New Class‘ BMW 1500 (pictured) 're-launched' BMW as a maker of high quality, sport compact saloons.

1966

A smaller two door range - the 02 - was launched together with a large six cylinder BMW 2500. BMW took over Hans Glas GmbH of Dingolfing - this remains BMW's largest plant and is today run by the son of the founder, Hans Glas.

1969 Redesigned flat-twin BMW motorcycles built at new plant in Spandau, Berlin.

1970 Eberhard V. Kuenheim becomes Chairman of the Board of Management. In his

time in this role, BMW developed into a brand of global standing.

1972

Munich HQ four cylinder building opened (pictured).

Second Dingolfing plant opened.

BMW assembly started at Rosslyn, South Africa.

BMW Motorsport GmbH founded.

Start of production of the 5 Series (E12). Electrically powered 2002s led the Munich Olympic marathon.

1973 BMW win European Touring Car Championship and European Championship for

F2 cars.

1974

The first European production turbocharged car, BMW 2002 Turbo, is launched (pictured).

1975

The first 3 Series (E21) and the first Art Car by Alexander Calder, is unveiled (pictured).

1976 The 6 Series (E24) and the R100RS Motorcycle, are launched.

1977

The first 7 Series (E23), is launched (pictured).

1978

The BMW M1 is unveiled (pictured).

1981 The BMW Enduro motorcycle, R80G/S is launched and wins the Paris-Dakar rally.

1983

BMW wins the F1 World Championship. Road engine block M12 engine powering Nelson Piquet's Brabham BT52-BMW is the first turbocharged engine to win the title.

K Series four cylinder bikes launched.

1985 BMW Technik GmbH was set up as a think tank to realise ideas and concepts for

the future.

1986 BMW M3 launched, becoming the most successful touring car racer ever.

1987

BMW Z1 - first car developed by BMW Technik GmbH (pictured here).

New BMW Research & Innovation centre - FIZ - officially opened to house 6,000 engineers under one roof.

New 750i powered by first German V12 engine to be produced since 1930s.

1990

BMW 850i launched.

BMW Rolls-Royce GmbH aero engine company founded.

1991

BMW car recycling initiative begins.

BMW E1 electric concept car unveiled.

1992 Construction of plant in Spartanburg, South Carolina begins.

1993

Eberhard von Kuenheim retires after 25 years at the helm of BMW.

Bernd Pichestrieder is new Chairman.

New Boxer R1100RS and F650 motorcycles launched.

1994

BMW acquire Rover Group from BAE.

Introduction of 3 Series Compact.

With the purchase of Rover, BMW take over Oxford plant.

1995 New 5 Series (E39), is launched.

1996

Integration of Rover.

Joint venture with Chrysler to build engines in Brazil.

BMW Z3 Roadster born.

1999

BMW X5, Z8 Roadster and Z9 coupe (pictured) launched.

BMW win Le Mans with V12LMR.

2000

Rover sold to The Phoenix Consortium and Land Rover sold to Ford.

BMW keep MINI brand. BMW C1 offered for sale.

BMW re-enter F1 with BMW WilliamsF1 team (BMW Williams F1 car pictured).

New M3 launched.

CleanEnergy concept accelerated at EXPO 2000.

2001

MINI is launched.

MINI One (pictured) and MINI Cooper go on sale.

New 7 Series revealed.

Opening of Hams Hall.

2002

MINI Cooper S launched. New 7 Series on sale in the UK.

Hydrogen World Tour visits the UK (BMW CleanEnergy hydrogen-powered car pictured).

2003

Assumed marque responsibility for Rolls-Royce Motor Cars.

Launch of Rolls-Royce Phantom (pictured).

Goodwood plant is opened. The MINI One D is launched.

2004

The MINI Convertible, 1 Series, 6 Series Convertible and X3 Sport Activity are launched (BMW 1 Series pictured).

BMW celebrate 3 significant milestones, the 75th

anniversary of the BMW badge appearing on a car, the 80th anniversary of the first BMW sports motorcycle and the 50th anniversary of the BMW light-alloy V8 engine.

2005

The new 3 Series (pictured), 7 Series and M5 are launched.

2006

£17 million BMW Group Academy UK opens (pictured).

BMW manufacturing produces one millionth vehicle.

Second generation MINI launched.

2007

The millionth MINI is delivered (MINI One pictured).

BMW Hydrogen 7 available to selected customers.

The Rolls-Royce Phantom Drophead Coupe is released from Plant Goodwood.

The second generation MINI One and MINI Cooper D are launched.

MINI Clubman goes on sale (from November).

2008

BMW 118d wins World Green Car of the Year.

BMW EfficientDynamics honoured with environmental awards from What Car? and Fleet News.

Ofsted awards its highest accolade to BMW Group Academy UK.

BMW awarded first prize for Group Sustainable Value Report at the Corporate Responsibility Reporting Awards 2007.

BMW wins International Engine of the Year for fourth consecutive year.

The new X6 is launched.

The new Electric MINI E is unveiled at the Los Angeles Autoshow.

2009

The new BMW Z4 (pictured), X1, 730Ld (7 Series) and the new MINI Convertible is launched.

The new 116d BMW‘s most fuel efficient and least polluting vehicle is launched.

BMW Group named as ‗greenest premium manufacturer by Clean Green Cars website and wins accolades at Fleet News Awards 2009 for fuel saving and emission reducing technologies.

BMW scoops honours from Business Car magazine including ‗Manufacturer of the Year‘, ‗Green Manufacturer of the Year‘, ‗Green Initiative of the Year‘ and

‗Executive Car of the Year‘ for the BMW 5 Series.

Rolls Royce announces new model series the Rolls Royce Ghost.

MINI celebrates 50 years of production.

BMW launches the New BMW S 1000 RR and the new BMW M3 Coupé.

BMW announces new Concept 5 Series Gran Turismo.

BMW 3 Series is proclaimed Best Fleet Car in the annual Fleet World honours.

BMW Group receives a host of honours at the What Car? Green Car Awards and the Which? Awards 2009.

BMW wins triple victory in the Engine of the Year Awards 2009.

BMW acquired the Hans Glas company based in Dingolfing, Germany, in 1966. It was reputed that the acquisition was mainly to gain access to Glas' development of the timing belt with an overhead camshaft in automotive applications.[14] Glas vehicles were briefly badged as BMW until the company was fully absorbed.

BMW 3-Series (F30)

In 1992, BMW acquired a large stake in California based industrial design studio

DesignworksUSA, which they fully acquired in 1995. In 1994, BMW bought the British Rover Group[15] (which at the time consisted of the Rover, Land Rover and MG brands as well as the rights to defunct brands including Austin and Morris), and owned it for six years. By 2000, Rover was incurring huge losses and BMW decided to sell the combine. The MG and Rover brands were sold to the Phoenix Consortium to form MG Rover, while Land Rover was taken over by Ford. BMW, meanwhile, retained the rights to build the new Mini, which was launched in 2001.

Chief designer Chris Bangle announced his departure from BMW in February 2009, after serving on the design team for nearly seventeen years.[16] He was replaced by Adrian van Hooydonk, Bangle's former right hand man. Bangle was known for his radical designs such as the 2002 7-Series and the 2002 Z4. In July 2007, the production rights for Husqvarna Motorcycles was purchased by BMW for a reported 93 million euros. BMW Motorrad plans

to continue operating Husqvarna Motorcycles as a separate enterprise. All development, sales and production activities, as well as the current workforce, have remained in place at its present location at Varese.

In June 2012, BMW was listed as the #1 most reputable company in the world by Forbes.com.[17] Rankings are based upon aspects such as ―people‘s willingness to buy, recommend, work for, and invest in a company is driven 60% by their perceptions of the company and only 40% by their perceptions of their products.‖

BMW AG originated with three other manufacturing companies, Rapp Motorenwerke and

Bayerische Flugzeugwerke (BFw) in Bavaria, and Fahrzeugfabrik Eisenach in Thuringia. Aircraft engine manufacturer Rapp Motorenwerke became Bayerische Motorenwerke in 1916. The engine manufacturer, which built proprietary industrial engines after World War I, was then bought by the owner of BFw who then merged BFw into BMW and moved the engine works onto BFw's premises. BFw's motorcycle sideline was improved upon by BMW and became an integral part of their business.

BMW became an automobile manufacturer in 1929 when it purchased Fahrzeugfabrik Eisenach, which, at the time, built Austin Sevens under licence under the Dixi marque. BMW's team of engineers progressively developed their cars from small Seven-based cars into six-cylinder luxury cars and, in 1936, began production of the BMW 328 sports car. Aircraft engines, motorcycles, and automobiles would be BMW's main products until World War II. During the war, against the wishes of its director Franz Josef Popp, BMW

concentrated on aircraft engine production, with motorcycles as a side line and automobile manufacture stopped altogether.

After the war, BMW survived by making pots, pans, and bicycles until 1948, when it restarted motorcycle production. Meanwhile, BMW's factory in Eisenach fell in the Soviet occupation zone and the Soviets restarted production of pre-war BMW motorcycles and automobiles there. This continued until 1955, after which they concentrated on cars based on pre-war DKW designs. BMW began building cars in Bavaria in 1952 with the BMW 501 luxury saloon. Sales of their luxury saloons were too small to be profitable, so BMW supplemented this with building Isettas under licence. Slow sales of luxury cars and small profit margins from microcars caused the BMW board to consider selling the operation to Daimler-Benz. However, Herbert Quandt was convinced to purchase a controlling interest in BMW and to invest in its future.

Quandt's investment, along with profits from the BMW 700, brought about the BMW New Class and BMW New Six. These new products, along with the absorption of Hans Glas GmbH, gave BMW a sure footing on which to expand. BMW grew in strength, eventually acquiring the Rover Group (most of which was later divested), and the license to build automobiles under the Rolls-Royce marque.

In 1913 Karl Rapp established Rapp Motorenwerke near the Oberwiesenfeld.[1] Rapp had chosen the site because it was close to Gustav Otto Flugmaschinenfabrik, with whom he had contracts to supply his four-cylinder aircraft engines.[1]

Rapp was sub-contracted by Austro-Daimler to manufacture their V12 aircraft engines. Austro-Daimler at the time was unable to meet its own demands to build V12 Aero engines. The officer supervising aero-engine building at Austro-Daimler on behalf of the Austrian government was Franz Josef Popp. When it was decided to produce Austro-Daimler engines at Rapp Motorenwerke, Popp was delegated to Munich from Vienna to supervise engine quality.[1]

Popp did not restrict himself to the role of observer, becoming actively involved in the overall management of the company. On 7 March 1916, Rapp Motorenwerke became Bayerische Motoren Werke GmbH.[2] Popp convinced Karl Rapp to accept the application of Max Friz, a young aircraft engine designer and engineer at Daimler. At first Rapp was going to turn down Friz‘s request; however, Popp successfully intervened on Friz‘s behalf, because he

recognized that Rapp Motorenwerke lacked an able designer. Within a few weeks Friz designed a new aircraft engine which, with an innovative carburettor and a variety of other technical details, was superior to any other German aero-engine. Later, this engine would gain world renown under the designation ―BMW IIIa‖.[citation needed]

Bayerische Motoren Werke GmbH 1917

The departure of Karl Rapp in 1917 enabled a fundamental restructuring of BMW GmbH, formerly Rapp Motorenwerke. While the development side was placed under Max Friz, Franz Josef Popp took over the post of Managing Director. Popp held this key position until his retirement in 1942, and was instrumental in shaping the future of BMW.

For the small BMW business, the large orders received from the Reichswehr for the BMW IIIa engine were overwhelming. Under Karl Rapp only a small number of engines had been produced and the manufacturing facilities were not in any way adequate to handle the mass production now required. Not only did BMW lack suitable machine tools but, to a very large degree, skilled manpower as well. However, the most serious drawback was in the small and aging workshops. Nevertheless, under the state-controlled war economy, officials in the relevant ministries were able to give BMW extensive practical support.[3] So in a short time BMW got the skilled workers and machinery it needed. In addition, the Munich company received a high level of financial assistance, which enabled it to build a completely new factory from the ground up, in the immediate vicinity of the old workshops. Due to the share capital being too small, both the building of the new plant and the working capital needed for materials and wages had to be financed with external funds, i.e. bank loans or state

assistance. The war ministries of Bavaria and Prussia (then both separate kingdoms within the Kaiser‘s Empire) did not, however, wish to go on supporting BMW with loans and

guarantees, and therefore urged the flotation of a public limited company.

The name-change to Bayerische Motoren Werke compelled management to devise a new logo for the company, therefore the famous BMW trademark is designed and patented at this time. However, they remained true to the imagery of the previous Rapp Motorenwerke emblem (which was designed by Karl's brother, Ottmar Rapp). Thus, both the old and the new logo were built up in the same way: the company name was placed in a black circle, which was once again given a pictorial form by placing a symbol within it. By analogy with this, the blue and white panels of the Bavarian national flag were placed at the center of the BMW logo. Not until the late 1920s was the logo lent a new interpretation as representing a rotating propeller.[5] The BMW Trademark, called a "roundel", was submitted for registration

on the rolls of the Imperial Patent Office, and registered there with no. 221388 on 10 Dec 1917.[citation needed]

BMW AG

In 1917 Julius Auspitzer‘s son-in-law, Max Wiedmann, held about 80 percent of the shares in Rapp Motorenwerke. He had obtained most of these shares from his father-in- law in 1914 and had thus become a figure of great influence in the business. Even after the name-change to Bayerische Motoren Werke GmbH, Wiedmann remained the principal shareholder in the company. Wiedmann‘s capitulation in July 1918 opened the way for the founding of a public limited company. On 13 August 1918 BMW AG was entered as a new company in the Commercial Register and took over from BMW GmbH all its manufacturing assets, order book and workforce.[6] The old BMW GmbH was renamed "Maschinenwerke

Schleißheimerstrasse" and was wound up on 12 November 1918. The share capital of BMW AG amounting to 12 million reichsmarks was subscribed by three groups of investors. One third of the shares was taken up in equal parts by the Bayerische Bank and the Norddeutsche Bank. A further third of the shares (worth 4 million reichsmarks) was acquired by the

Nuremberg industrialist, Fritz Neumeyer. This ensured that 50 percent of the capital (6 million reichsmarks) was in the hands of Bavarian businesses or banks. The Bavarian

government placed the highest value on this strong local shareholding. The final one-third of the BMW shares were taken up by a Viennese financier, Camillo Castiglioni.[3]

Castiglioni

Main article: Camillo Castiglioni

During the war, Castiglioni had been one of the principal players in the Austro-Hungarian aircraft industry, and for a long time had had links with Rapp Motorenwerke. So he had probably already been influential in negotiating the major order from Austro-Daimler Motoren to Rapp Motorenwerke in 1916 and would have received a large commission on this. However, Castiglioni‘s interests were not restricted to Austria. As early as 1915, by merging a number of companies, he had founded Brandenburgische Flugzeugwerke in the Berlin area, which supplied aircraft to the German navy. It seemed only logical that he would want to extend his network of companies by adding a German aero-engine manufacturer.

First crisis for BMW AG – WWI aftermath

Winter 1918 factory closure

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(June 2010)

The end of the war in November 1918 had a huge impact on the entire German aircraft industry. Since 1914 the military had been placing lucrative orders with aircraft and aero-engine firms. But now, military demand collapsed completely. Civil aviation was still in its infancy, and no substitute business could be expected from that quarter. The end of the war

hit BMW particularly hard, since the BMW IIIa aero-engine was the only product the

company was building in 1918, and suddenly there was no more demand for aircraft engines.

In order to enable companies to resume civil production as rapidly as possible, a central demobilization office was set up as soon as the war was over, and branches opened right across Germany. The Commissioner for Demobilization with responsibility for Bavaria ordered the closure of BMW‘s Munich plant with effect from 6 December 1918.[3]

The employees of the fledgling company faced locked factory gates and a future that was far from certain. The reason given by the civil servants for this factory closure was the general

shortage of raw materials such as coal and metals. The small supplies of coal that were still on hand had to be made available for the freezing population, and such supplies of metals as remained were diverted to consumer industries. As a former armaments manufacturer, BMW was sent away empty-handed.

Factory reopened

BMW‘s top management was not discouraged by the compulsory closure decreed by the government. When permission was given for the gates to re-open on 1 February 1919, Managing Director Franz Josef Popp got the design department working constantly in order to have new products ready to sell to the peacetime market. Engines were designed for boats, cars, trucks and motorcycles. From the outset, BMW tried to remain an engine manufacturer. At the same time it also supplied industrial customers with products from its aluminum foundry.[citation needed]

In 1919 BMW was forced to give up building aircraft engines completely, which it had initially continued on a modest scale. The Allies had banned Germany from building aircraft and aircraft engines, and in addition had demanded that all aviation assets manufactured up to that date should be handed over or destroyed.[7] While the new BMW engines for civilian use were technically advanced, they could not provide the company with long-term security in a highly competitive market. The top management therefore began looking for

alternatives.[citation needed]

On 18 June 1919, BMW obtained a license agreement for the production of brake assemblies with the Berlin-based company Knorr-Bremse AG. The contract was to run for ten years and was intended to provide BMW with employment and profits until 1930. At that time, Knorr-Bremse manufactured state-of-the-art pneumatic brakes for trains and had the benefit of large, long-term contracts, which it could not, however, handle at its own factory. For this reason the Berlin company was looking for a manufacturer to license – and found it in Munich. One advantage BMW had in negotiating the contract was the announcement by the Bavarian government that they would be prepared to fit Bavarian trains with Knorr brakes provided they were manufactured in Bavaria.[citation needed]

Company sold to Knorr-Bremse

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From the summer of 1919 onward, the manufacture of pneumatic brakes increasingly overshadowed engine production. The brake business occupied the majority of the BMW workforce, which was once again being expanded. This reorientation of the BMW product range had an effect on the ownership structure. As soon as the war ended, most of the BMW shareholders had lost interest in the company. Only the major shareholder Camillo

Castiglioni still believed at first that BMW had a future, and took up all the company shares himself. However, Castiglioni was not an entrepreneur who took the long view; he was an astute financier in search of a quick return. The manufacture of railway brakes provided an opportunity to build up a solid business with sure profits, albeit small ones – too small for Castiglioni. In August 1920, when the chairman of Knorr-Bremse AG, Johannes Vielmetter, offered to buy all of Castiglioni's shares in BMW, the Viennese speculator accepted. BMW was now wholly owned by the Knorr-Bremse company of Berlin. The new proprietors made only minor alterations to the structure of BMW, since they wished neither to change the management nor to get involved in the production process.

Return of Castiglioni and merger with BFw

Under the leadership of Knorr-Bremse, BMW‘s growth was considerable. Between the end of 1918 and 1921 the workforce grew from 800 to 1,800. In addition, the company set up its own training program with classes at the factory. In this way, in 1921 alone, BMW was able to offer solid technical training to some 200 young people. However, the price for this

comfortable commercial situation was dependence on Knorr-Bremse and the abandonment of its core business of building aircraft engines.[citation needed]

In 1922, Castiglioni offered to buy BMW's engine-building division, aluminum foundry, name, and trademark from Knorr-Bremse. Castiglioni declared that he intended to set up an engine manufacturing plant of his own, and so he asked for the drawings, patents and machine tools needed for manufacturing the engines. He also wanted to take with him to his new company several key figures such as the chief designer, Max Friz, and the chief

executive, Franz Josef Popp. The remainder of the company, including the premises, would remain under Knorr-Bremse's ownership and would be renamed. His offer of 75 million reichsmarks was accepted by Knorr-Bremse and, upon the contract being signed on 20 May 1922, the BMW engine-building business was once again in Castiglioni‘s hands, while the remainder of the company became a subsidiary of Knorr-Bremse and was renamed

Südbremse AG.[citation needed]

Castiglioni did not purchase BMW's premises in its transaction with Knorr-Bremse. Instead, he merged his Bayerische Flugzeugwerke (BFw) into BMW and established BMW's factory and headquarters at BFw's premises. BMW was moved into the same buildings of Gustav Otto's former Otto-Flugzeugwerke on Lerchenauer Strasse 76. BMW's headquarters have been at that address ever since.[1][8][9][10]

BMW, with some 200 workers housed in the former BFw's old wooden sheds, began

production on a modest scale. Initially its output was BFw motorcycles, proprietary engines, and spare parts for aircraft engines. To begin with, business for the ―new‖ BMW AG did not go particularly well. The market for proprietary engines was still as hotly contested in 1921 as it had been in 1919 when BMW had gone into brake manufacture to secure its long-term future.[citation needed]

In 1923, while Germany suffered through a year of runaway inflation and numerous attempted coups, BMW made a successful new start: the company resumed production of aviation engines, selling them mainly to the Soviet Union, and it launched the first

motorcycle of its own design, the R32.[citation needed] R32 motorcycle

Main article: History of BMW motorcycles

R32: the first BMW motorcycle

At the German Motor Show in Berlin (September 28 – October 7, 1923) BMW exhibited the R32 to the public for the first time. The first motorcycle from BMW convinced the experts immediately, and was an instantly popular product with consumers. A comment in the magazine DER MOTORWAGEN read: "And finally, the culmination of the exhibition, the new BMW motorcycle (494 cc) with the cylinders arranged transversely. Despite its youth it is a remarkably fast and successful motorcycle."

In 1924 BMW built its first model motorcycle, the R32. This had a 500 cc air-cooled horizontally opposed engine, a feature that would resonate among their various models for decades to come, albeit with displacement increases and newer technology. The major innovation was the use of a driveshaft instead of a chain to drive the rear wheel. To this day the driveshaft and boxer engine are still used on BMW motorcycles.

Automobiles

BMW's first automobile, the BMW Dixi

BMW‘s automobile history had begun much earlier than 1924, if only in the form of

proposals and prototypes. Correspondence dating back to 1918 shows the first use of the term ―automobile‖ in BMW history. But no details, let alone images have come down to us

regarding this fourwheeled primogenitor. Subsequently, BMW manufactured various built-in motors with four and two cylinders that powered a wide variety of agricultural vehicles in the early 1920s. The spectrum of machinery driven across the land by BMW units ranged from single-track cars to huge farm tractors. Around 1925 two specially hired BMW designers, Max Friz and Gotthilf Dürrwächter, both former employees of Daimler-Benz in Stuttgart, were commissioned by BMW‘s Managing Director Franz Josef Popp to design a BMW production car. From this first, demonstrably operational BMW car – though as yet lacking any bodywork, BMW laid the groundwork for one of the world's most respected

manufacturer of automobiles.

Success for BMW in this industry came from an already proven source-the Seven. In 1927 the tiny Dixi, an Austin Seven produced under license, began production in Eisenach. BMW bought the Dixi Company the following year, and this became the company's first car, the BMW 3/15.

BMW designs its own cars

Towards the end of 1930, BMW attempted to introduce a new front axle with independent wheel suspension for both their models, the BMW 'Dixi' 3/15 DA4 and BMW 'Wartburg' DA3, but this resulted in accidents with the prototypes because of construction faults.[11] However, as the license with Austin would end in 1932, BMW decided upon the

development of a completely new model and called in the help of German engineer Josef Ganz. He was hired as a consultant engineer at BMW in July 1931. At first, Josef Ganz negotiated with BMW about possible manufacture of his innovative rear-engined Maikäfer prototype at BMW. However, BMW decided for a different model, more along the lines of the previous Dixi model. Therefore, with the assistance of Ganz, work started on the development of the BMW AM1 (Automobilkonstruktion München 1), a small car with a front-mounted engine, rear-wheel drive, and independent wheel suspension with swing-axles.

Six-cylinder cars

In 1933, BMW introduced the 303.[12][13] Larger and more conventional than the AM-series 3/20, the 303 used BMW's new M78 engine, making it the first BMW automobile to use a straight-six engine.[13][14] The 303 was also the first BMW to use the "kidney grille" that would become a characteristic of BMW styling.[15] The 303 formed the basis for the four-cylinder 309 and the larger-engined 315 and 319,[16][17] while the 303 chassis supported the 315/1 and 319/1 roadsters[16][18] and the restyled 329.[19]

The 303 platform was supplemented and later supplanted by the 326, a larger car with a more rigid frame. Introduced in 1936, the 326 was BMW's first four-door sedan.[20][21] A shortened version of the 326 frame was used in the 320, which replaced the 303-framed 329, in the 321, which replaced the 320, and in the 327 coupé.[22][23]

BMW 328 Brescia Grand Prix coupé

The 328 replaced the 315/1 and 319/1 roadsters in 1936. Unlike the 303-based 315/1 and 319/1, the 328 had a purpose-built frame.[19] While the 315/1 and 319/1 had M78 engines in a higher state of tune than in the respective 315 and 319 sedans,[24] the 328's M328 engine had a specially-designed hemispheric cylidner head and other modifications that brought its power to 80 PS (59 kW).[25] From its introduction at the Eifelrennen race at the Nurburgring in 1936, where Ernst Henne drove it to win the 2.0 litre class,[19][26] to the overall victory of Fritz Huschke von Hanstein at the 1940 Brescia Grand Prix during World War II,[27][28] the 328 was a legendary performer, with more than 100 class wins in 1937 alone.[29]

An extended version of the 326's frame was used in the 335, a luxury car with the 3.5 litre M335 engine.[30] The 335 was built from 1939 to 1941.[31]

BMW 801 radial engine

The German invasion of Poland and commencement of hostilities meant that manufacturing facilities in Germany were directed by the Nazi regime to re-focus on the manufacture of products required to support the war effort. For BMW, that meant an emphasis on production of aero (airplane) engines. Josef Popp argued against this, contending that, although

financially lucrative, the change in focus would mean that the BMW AG would be heavily dependent on decisions made by the Nazi regime. In June 1940, he wrote to the Chairman of the Supervisory Board, Emil Georg von Stauss, explaining that the situation could ―threaten the very existence of BMW AG if there were any setback to aero engine production‖.[4]

This change in focus did in fact lead to a significant increase in external control from political and military agencies, weakening the position of the BMW management and eroding the position of Franz Josef Popp, whose leadership of BMW had been relatively autonomous and

autocratic to that point. Statutes enacted on October 1, 1940 required all subsidiaries to transfer profit and loss responsibility to BMW AG. Expansion of the aero engine business required several injections of capital to Flugmotorenbau GmbH, with the total capitalization of BMW AG increasing in stages to RM 100 million by 1944. Further restructuring was carried out in 1944, with centralization of sales in BMW AG and the GmbHs acting only as property companies.

BMW R75 military sidecar outfit

The emphasis on aero engines caused significant changes in BMW AG's business.

Motorcycle production located at the Munich manufacturing facility abandoned production of non-military motorcycles by 1940, producing only the R12 and the R75, which were supplied to the Wehrmacht. At the beginning of 1942, motorcycle production was transferred to Eisenach so that the Munich plant could be dedicated to aero engine fabrication, and in 1942, BMW abandoned motorcycle production altogether. BMW also ceased production of

automobiles in 1940, since cars were not being produced for the military. Only automobile repair facilities were retained, along with a development department.

BMW 003 jet engine

A wide range of aero engines was ultimately produced for the Luftwaffe, including one of the most powerful engines of the time – the BMW 801. Over 30,000 aero engines were

manufactured through 1945, as well as over 500 jet engines such as the BMW 003. To enable this massive production effort, forced labor was utilized, consisting primarily of prisoners from concentration camps such as Dachau.[32] By the end of the war, almost 50% of the 50,000-person workforce at BMW AG consisted of prisoners from concentration camps.

BMW AG plants were confiscated by Allied troops at the end of the war, and production of aero and jet engines for the Luftwaffe was shut down.

Second crisis for BMW AG – WWII aftermath

The acclaimed 1956 BMW 507

BMW AG was heavily bombed towards the end of the war, reducing most of the company's production facilities to rubble. In fact, by the end of the war, the Munich plant was

completely destroyed.[33] Of its sites, those in eastern Germany (Eisenach-Dürrerhof, Wandlitz-Basdorf and Zühlsdorf) were seized by the Soviets. 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 motorcycle, the R24, until 1948, and a car model until 1952. During the three-year ban BMW used scraps and what resources they had available to manufacture bicycles and kitchen supplies.

In the east, the company's factory at Eisenach was taken over by the Soviet Awtowelo group which formed finally the Eisenacher Motor-Werke. 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 and motorcycles were then branded EMW (Eisenacher Motoren-Werke), production continuing until 1955.

BMW Isetta- sales of this car saved the company in post WWII Germany

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 (sedan), the 400 by 1947, a car so similar to the BMW 327 that it even kept the famous BMW grille.

In 1948 BMW produced its first postwar motorcycle and in 1952 it produced its first passenger car since the war. However, its car models were not commercially successful; models such as the acclaimed BMW 507 and 503 were too expensive to build profitably and were low volume.

Third crisis for BMW AG – a company for sale

BMW 1602

By 1959, BMW was in debt and losing money.[34] The Isetta was selling well but with small profit margins.[35] Their 501-based luxury sedans were not selling well enough to be

profitable and were becoming increasingly outdated.[36] Their 503 coupé and 507 roadster were too expensive to be profitable.[36] Their 600, a four seater based on the Isetta, was selling poorly.[37] The motorcycle market imploded in the mid-1950s with increased affluence turning Germans away from motorcycles and toward cars.[38] BMW had sold their Allach plant to MAN in 1954.[39] American Motors and the Rootes Group had both tried to acquire BMW.[40]

At BMW's annual general meeting on 9 December 1959, Dr. Hans Feith, chairman of BMW's supervisory board, proposed a merger with Daimler-Benz. The dealers and small

shareholders opposed this suggestion and rallied around a counter-proposal by Dr. Friedrich Mathern, which gained enough support to stop the merger.[35][40] At that time, the Quandt Group, led by half-brothers Herbert and Harald Quandt, had recently increased their holdings in BMW and had become their largest shareholder.[40] By the end of November 1960, the Quandts owned two-thirds of BMW's stock between them.[34]

By this time BMW had launched the 700, a small car with an air-cooled, rear-mounted 697 cc boxer engine derived from the engine powering the R67 motorcycle. It was available as a 2-door sedan and as a coupe, both versions having been designed by Giovanni Michelotti.[41] There was also a more powerful RS model for racing.[42]

At the Frankfurt Motor Show in 1961, BMW launched the 1500, a compact sedan with front disc brakes and four-wheel independent suspension.[43] 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.[citation needed]

The "New Class" 1500 was developed into 1600 and 1800 models.[44] In 1966, the two-door version of the 1600 was launched, along with a convertible in 1967. These models began the '02' series, of which the 2002 was the best known, and which was continued until 1976 when it was replaced by the BMW 3 Series.[45]

By 1963, with the company back on its feet, BMW offered dividends to its shareholders for the first time since World War II.[46]

Expansion- Hans Glas GmbH

München, BMW Autowerk, 1968

By 1966, the Munich plant had reached the limits of its production capacity. Although BMW had initially planned to build an entirely new factory, the company bought the crisis-ridden Hans Glas GmbH with its factories in Dingolfing and Landshut. Both plants were

restructured, and in the following decades BMW's largest plant took shape in Dingolfing.

BMW 5 series (E12)

In 1968, BMW launched its large "New Six" sedans, the 2500, 2800, and American Bavaria, and coupés, the 2.5 CS and 2800 CS.

Of major importance to BMW was the arrival of Eberhard von Kuenheim from Daimler-Benz AG. Just 40 years old, he presided over the company's transformation from a national firm with a European-focused reputation into a global brand with international prestige.

Already commercially successful by the mid 60s, in December 1971, BMW moved to the new HQ present in Munich, architecturally modeled after four cylinders.

In 1972, the 5 Series was launched to replace the New Six sedans, with a body styled by Bertone. The new class coupes were replaced by the 3 Series in 1975, and newly introduced larger sedans 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 coupes that replaced the CS and the M1, were also added to the mix as the market demanded.

From 1970 to 1993, under von Kuenheim, turnover increased 18-fold, car production quadrupled and motorcycle production tripled.

Rover

The Rover 75, the only new Rover released under BMW

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 active Rover, Mini and Land Rover brands as well as rights to many dormant marques such as Austin, Morris, Riley, Triumph and Wolseley under 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. A five part BBC documentary, When Rover Met BMW (1996), gave some insight into the difficulties faced by the two firms.[47]

BMW was more successful with the Mini, MG and Land 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 Venture Holdings for a nominal £10 and Land Rover going to the Ford Motor Company. The German press ridiculed the English firm as "The English Patient", after the film. BMW itself, protected by its product range's image, was largely spared the blame. Even the British press was not particularly sympathetic towards Rover.

BMW retained the rights to Mini, Triumph and other marques. MINI has been a highly successful business, though the other names have not been used yet. Following the

bankruptcy of MG Rover in 2005, the Rover name was sold to Ford in 2006 after BMW gave it a first refusal offer in 2000. However, Ford did not release any Rover-badged cars before selling the name to Tata Group, while the MG brand has been relaunched by Nanjing Automobile of China.

Redesign controversy

In the early 2000s, BMW undertook another of its periodic cycles of redoing the design language of its various series of vehicles, under the auspices of newly promoted design chief Christopher Bangle. These controversial[who?] designs often featured unconventional

proportions with complex concave and convex curved surfaces combined with sharp panel creases and slashes, a design cue called "flame surfacing".[this quote needs a citation] Much of the new language did not rest well with BMW enthusiasts or the automotive press which referred to the new designs as "Bangled" or "Bangle-ised".[this quote needs a citation] Although Bangle did not pen all of the new designs himself, as the design chief he was ultimately responsible for the direction that the company took and thus received much of the criticism. As Bangle has now been promoted within the company to the BMW Group Head of Design, leaving him in charge of not only BMW but also Rolls-Royce and Mini, some[who?] questioned what long term effect the disaffection of BMW traditionalists[clarification needed] for these designs will have on sales, and on the company's future. Sales at BMW have increased every year since some of his most debated designs have gone into production.[citation needed]

Many aspects of the "controversial" designs are now beginning to surface in other auto manufacturer's designs.[citation needed] Though the design debuted and was popularized by BMW's Series, Hyundai incorporated this design cue in 1999, three years before the 7-Series was released, and Maybach incorporated it since its first showing in 1997.

Bangle was also responsible for many 'conservative' BMW designs and has worked at BMW for almost a decade. The first X5 sketches (which closely resembled the production car), were designed by him, and under his tenure the E46 3 Series came to be. Despite much of the scorn heaped on Chris Bangle, his design selections were approved by the entire executive board of BMW AG, including the majority owners, the Quandt family.[citation needed] BMW's design team has won numerous awards with him at the helm.

Production outside Germany

BMW's Rosslyn, South Africa, plant was the first BMW assembly line established outside Germany, with production starting in 1973.[48] The wholly owned subsidiary now exports over 70% of its output.[citation needed] In the mid-1990s, BMW invested R1bn to upgrade the Rosslyn factory. The plant now exports over 50,000 3 Series cars a year[citation needed], mostly to the USA, Japan, Australia, Africa and the Middle East.

BMW started producing automobiles at its Spartanburg, South Carolina, plant in 1994. Today, the plant manufactures the BMW X5 and the BMW X6. The production of the BMW X3 will be moving to Spartanburg from Europe after the completion of a major expansion of the U.S. facility.

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 600 vehicles daily. Recently, the plant has undergone a major renovation switching from 2 production lines down to one. Both the X5 and the X6 are produced in the same line, one right after the other.

Outside Germany, the largest output of the BMW Group comes from British factories. The Hams Hall plant manufactures four-cylinder BMW engines for use around the world in

3-Series, 1-Series and Z4 vehicles. This is in addition to MINIs and Rolls-Royces made in Oxford and Goodwood.

BMW signed agreement in 1999 with Avtotor to produce cars in Kaliningrad, Russia. Factory has been assembling 3 and 5 -series cars.[49]

Starting from October 2004, BMWs intended for the Chinese market are produced in Shenyang, China.[50] BMW has established a joint venture with Chinese manufacturer

Brilliance to build BMW 3 Series and 5 Series that have been modified for the needs of local markets.

The BMW X3 was manufactured in Graz, Austria between 2004 and 2007 by Magna Steyr with mainly German components. The X3 production will be moved to the Spartanburg plant due in part to high production and transportation costs of what was meant to be the "more affordable" SUV. North American pricing, after said costs, were nearly on par with the larger, American-built X5.[51]

In 2005, BMW Group built a new manufacturing facility in Egypt. This plant builds 3 Series, 5 Series, 7 Series, and X3 vehicles for the African and Middle East markets.

BMW opened its first assembly plant in Chennai, India in March 2007 to assemble 3-series and 5-series vehicles. The 20 Million Euro plant aims to produce 1,700 cars per year in the medium term, though this could rise to up to 10,000 cars if demand grows.[52] The new factory may also be used to help boost the production of BMW‘s super-successful MINI.[53]

BMW India headquarters is located in Gurgaon outside Delhi.

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 outbid BMW and bought the company for £430 million, but BMW outflanked its German rival. Although Volkswagen had bought rights to the "Spirit of Ecstasy" mascot and the shape of the radiator grille, it lacked rights to the Rolls-Royce name. Rolls-Royce plc (the aero-engine business) retained the rights over the Rolls-Royce trademark and wished to strengthen its existing business partnership with BMW which extended to the BMW Rolls-Royce joint venture. Consequently, BMW was later in 1998 allowed to acquire the rights to use the name "Rolls-Royce and "RR" logo on cars for £40 million.

In a separate deal BMW agreed to let Volkswagen use the name "Rolls-Royce and "RR" logo on cars until 2003 on condition that BMW would get the right to the grille and mascot from 2003, onwards.

BMW supplied the engines to the current Seraph/Arnage range and their supply contract had a clause that allowed BMW to stop the supply of engines the day another owner, (than then Vickers plc), took over the company. BMW could effectively stop Volkswagens

Anyway, Volkswagen was permitted to build Rolls-Royces with all three trademarks at its Crewe factory only until 2003, but quickly shifted its emphasis to the Bentley brand. BMW would have all the three key trademarks in 2003.

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. The model, priced around US$330,000, has experienced record sales worldwide of 796 Phantoms sold in 2005.

Current Position

BMW becomes No. 1 luxury car maker in India

It's time for the iconic Mercedes Benz to bow out as the number one luxury car brand in India. BMW is the new market leader in the luxury segment, as it has achieved leadership position in the country by increasing its market share to over 40 per cent.

BMW India increased its market share in the luxury segment of the Indian automotive market to over 40% in 2009 (from 9% at the end of 2006). With 3,619 cars delivered to customers in the calendar year 2009, BMW India has achieved the "highest sales by a manufacturer in the luxury car segment in a year" till date.

The company's top selling model in 2009 has been the BMW 3 Series at 1,155 units, while the second best seller has been the 5 Series at 1,590 units. Despite the initial challenges, no other country has shown the kind of growth that India has shown for the German carmaker.

Commenting on the occasion, Peter Kronschnabl, president, BMW India said, "We made great strides in implementing our strategy, and this gave us a significant competitive edge that provided us with a clearly formulated vision. Our goals were clear, and we had to be consistent to realize them. Our business activities are, and will remain, focused on the long term. The main trends that are relevant to our business - such as the demand for mobility and the desire for differentiation - will remain unchanged."

2009 was not an easy year for the automotive industry - and that applies equally to BMW India. It stood its ground in a fiercely competitive environment with new ideas and the strength to promote new products. BMW India was prepared to meet the challenges head on to ensure the company's success. These qualities enabled BMW India to effectively weather the stormy conditions, continue to invest in its future, anticipate trends and be prepared for the future. Despite all challenges, BMW India delivered strong operating performance in 2009.

With a carefully planned and successfully executed market entry strategy, and consistent sales performance, BMW India achieved market leadership in the luxury car segment in India. Kronschnabl further added, "Now more than ever, we see that the number one position in the market is not everything. But, the future belongs to India and if you want to benefit from the dynamics of the Indian market later, you need to act today. This is what we did. Our commitment to India was among the strategic decisions that had to be taken right away."

BMW group took a bold step in its Asia strategy in 2007 by establishing the BMW India headquarters in Gurgaon (National Capital Region), a Central Parts Warehouse in Mumbai, and the BMW Plant Chennai in Tamil Nadu. Presently, the BMW Plant Chennai produces the BMW 3 Series and BMW 5 Series sedans in petrol and diesel variants and has a capacity to produce 3,000 units per year on a single shift basis. In medium term, BMW India has employed around 200 people; up to 600 additional jobs have been created in the dealer and service network. Presently, BMW India is present at 16 locations in the Indian market.

Market Share

About Us.

The UK has an important role to play within the BMW Group. It is the only place in the world where all three of BMW Group’s brands – BMW, MINI and Rolls-Royce Motor Cars – are represented by manufacturing operations.

The growth of BMW Group’s UK operations has been significant. MINI Plant Oxford, the heart of MINI production, began producing MINIs in 2001 and has now produced over two million. BMW Plant Hams Hall started producing 4-cylinder petrol engines in 2001. Rolls-Royce Motor Cars Limited began manufacturing vehicles at its Goodwood plant in 2003. MINI Plant Swindon has been the main supplier of MINI body panels since 2005.

In addition to our manufacturing sites, BMW Group also has a UK Sales and Marketing subsidiary in Bracknell with a Vehicle Distribution Centre in Thorne, near Doncaster. In 2011, BMW Group UK Ltd. reported sales of 116, 642 BMW and 50,138 MINI vehicles, representing an 8.59 per cent share of the total UK car market.

As BMW Group has grown in the UK, so have our environmental responsibilities. Protecting the environment is an obligation we take very seriously. All our manufacturing plants worldwide are certified to the International Management Standard ISO 14001. To achieve this we have established a series of improvement programmes that we actively develop and monitor.

BMW Group employs around 8,000 people directly in the UK with an additional 11,000 in its 147-strong dealer network representing BMW and MINI brands. The UK is BMW Group’s fourth largest sales market in the world. The company has invested over £1 billion in its UK operations since 2000 and a further £760 million is being invested between 2012 and 2015.

BMW Plant Oxford.

Products: MINI Hatch, MINI Clubman, MINI Convertible, MINI Coupé, MINI Roadster, Clubvan Employing around 3,700 associates, the plant builds around 900 MINIs per day to individual customer order, five days a week. The site covers over 100 acres and consists of a bodyshop, paintshop and assembly hall. There is also a Quality and Engineering Centre which tests and ensures that vehicle quality meets the highest standards. Since its launch in 2001, over two million MINIs have been built, over 1.6 million of which have been exported to over 100 countries. MINI Plant Oxford is set to benefit from the majority of the company’s £760m 2011-2014 UK manufacturing investment programme as it prepares for production of the next generation of MINI models.

BMW Plant Hams Hall.

The first BMW engine factory to be built outside Germany and Austria, production began in 2001 following an initial investment of £400 million. More than 3 million four-cylinder petrol engines have now been produced to power the BMW 1 Series, BMW 3 Series, BMW X1 and all petrol derivatives within the MINI range. Over 800 people are employed at the plant supplying engines to factories across the global BMW Group production network in Germany, Austria and South Africa, in addition to BMW CKD plants in Germany for onward dispatch to Thailand, Indonesia, Malaysia, Egypt, Russia and India. BMW Plant Hams Hall has also been selected as the manufacturing site for the new generation of high-tech, three-cylinder petrol engines, including engines to power the exciting BMW i8 plug-in hybrid sportscar, scheduled to reach market in 2014.

BMW Group Plant Hams Hall.

BMW Plant Swindon.

Products: Home of MINI panel production

MINI Plant Swindon employs approximately 900 associates on a site covering 450,000 m². Facilities include 16 press lines and 140 robot cells. The plant has been the main supplier of MINI panels since 2005.

BMW Group Plant Swindon

BMW UK Ltd.

UK sales, marketing and aftersales subsidiary of BMW AG

BMW Group UK is the sales, marketing and aftersales subsidiary of BMW AG. Headquartered in Bracknell, Berkshire, BMW Group UK is responsible for importing BMW vehicles into the UK and supplying them for sale through its independent dealer network. BMW Group UK also has

responsibility for all national marketing, advertising and aftersales activities for the BMW and MINI brands. Established in 1980, BMW Group UK currently employs around 500 associates.

BMW Financial Services (GB) Ltd.

Established in 1996 and based in Hook, Hampshire, BMW Financial Services (UK) Ltd offers a range of options for financing both private and corporate purchases of BMW and MINI vehicles, as well as a range of insurance products designed to cover car, home and travel. Around 300 associates are based at Hook, which is also the main hub for Alphabet – a multi-make fleet management company, serving both national and multinational clients. Part of BMW Group UK for over a decade, Alphabet, has further strengthened its European market position through the acquisition of ING Car Lease, a division of ING Groep N.V. Alphabet increasing the number of company car contracts under

management to approximately 540,000 in 16 European countries and consolidating its competitive lead in the European fleet management market.

BMW Motorrad UK

The motorcycling division of BMW Group UK based at Bracknell, BMW Motorrad UK has shown significant growth in the UK. BMW continues to dominate the adventuresports and touring sectors; in 2011, combined sales of the BMW R 1200 GS and R 1200 GS Adventure variant made BMW’s class-leading adventure sports machine the UK’s best-selling motorcycle over 125cc.

BMW Motorrad’s strong network of 36 dealerships across the country continue to offer industry-leading service, resulting in BMW Motorrad being voted ‘Best Motorcycle Brand’ in both the 2010 and 2011 RiDER Power survey. BMW Motorrad also organises and runs worldwide riding tours, rider training from novice to advanced and an off-roadriding school, through its activities program – World of BMW.

BMW Motorrad UK

BMW Group Academy UK

Wokefield Park, near Reading is host to the BMW Group Academy UK. This purpose-built training and development facility is responsible for providing all technical and non-technical training to BMW, MINI and Motorrad dealer network across the UK from apprentices to dealer principals. Opened in May 2006, the Academy has been awarded an Ofsted rating of Grade 1 (‘Outstanding’) based on its last three audits.

BMW Group UK Regional Parts Distribution Centre

A new 457,546 sq ft (42,506 sq m) purpose-built warehouse for BMW Group (UK) Ltd. became operational in 2012 at ProLogis Park Pineham in Northampton. The facility serves as BMW Group’s regional distribution centre delivering parts to BMW, MINI, Rolls-Royce Motor Cars and BMW motorcycle dealers throughout the UK and Ireland. The new facility represents a multi-million pound investment for BMW Group UK that is designed to further develop our industry-leading parts

BMW Group UK Vehicle Distribution Centre

Thorne near Doncaster is the location for the BMW Group UK Vehicle Distribution Centre. All vehicles imported through BMW Group UK are sent to Thorne for final preparation before being distributed across the dealer network. Around 50 associates are currently based at this site.

Rolls-Royce Motor Cars Limited.

Products: Phantom, Phantom Extended Wheelbase, Phantom Coupé, Phantom Drophead Coupé, Ghost, Ghost Extended Wheelbase

The modern home of Rolls-Royce Motor Cars is a purpose-built manufacturing plant situated on the Goodwood Estate in West Susex. Here over 1,000 specialists combine precision technology with traditional craftsmanship in the production of all Rolls-Royce Pahntom and Ghost models, continuing the marque’s heritage of hand-built luxury vehicles.

Genuine BMW accessories for your BMW.

Go to accessories

Key facts and figures.

 18,000 people directly employed by company and dealer network with over 46,000 UK jobs supported in total

 Over 100 apprentices are currently employed across UK manufacturing sites

 2000 - 2015 £1.6 billion invested in UK manufacturing operations at Oxford, Hams Hall, Swindon and Goodwood

 Almost every fifth car produced in the UK is a MINI

 More than two million MINIs have driven off the Oxford production line

 More than 1.6 million MINIs have been exported to over 100 countries

 14% of all UK cars produced at MINI Plant Oxford - third largest vehicle producer in 2011

 17% of all UK automotive engines produced at Hams Hall - second largest engine producer in 2011

 £1.2 billion contribution to UK GDP

 £2.4 billion worth of cars and exported per annum

 £1.2 billion annual spend by BMW Group/dealer networkn on goods and services with UK based suppliers

The new BMW X1

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