BMW - A Rocky Road To Success

In the fickle automotive industry, manufacturers arecompany's involvement in the manufacturing of
consistently being pushed to be more innovative,airplane engines, imposed a three-year ban on
attempting to provide a product to a consumer whoproduction. BMW reemerged as a manufacturer of
more often than not, does not really know exactlykitchen and garden equipment a short time later. It
what it is that he wants. Few brand names inspire thewasn't until 1948 that BMW introduced a new
loyalty that they did 20 or even 30 years ago. There is,motorcycle (R24) and 1952 before a new car was
however, at least one company that has managed toreleased. Automobile sales in the 1950's, however,
hold on to it's distinction as a world class automobilewere lagging and the financial stability of BMW was
manufacturer, and is still going strong 79 years afteronce more in question. It was in 1959 that the
the introduction of it's first automobile. The name ofmanagement team at BMW had all but given up and
that company is BMW, known in English as thesuggested the sale of the company to Daimler- Benz.
Bavarian Motor Works.Close to making the agreement, Herbert Quandt, a
Synonymous to luxury, high quality, and speed, themajor shareholder instead purchased enough additional
BMW brand name is one that is recognized around theshares in the company to give him a majority holding
world as the automobile that everyone eventuallyand vetoed the deal. It was later in 1959 that BMW
wants to own.introduced the 700, a sporty model that utilized the 697
While the company seems to have a unbelievablecc boxer engine from the R67 motorcycle. It was this
record of successes, however, few people realize justmodel that seemed to seal the future success of the
how difficult that road has been. Founded in 1913 bycompany.
Karl Rapp, the company (known then asIn the early 1960's, the Bavarian Motor Works began
Rapp-Motorenwerke) was originally based in an oldfocusing on a market that included small touring cars
bicycle factory in Munich. Rapp specialized inand sports sedans. By 1963, the company was once
manufacturing engines for aircrafts. Only 4 years later,more on solid footing and offered dividends to
in 1917, however, Rapp's business got into financialshareholders for the first time since WWII. It was in the
trouble and was purchased by Franz-Josef Popp andmid 1960's that the German plant reached production
Max Friz. It was then that the name of the companycapabilities and BMW purchased the Hans Glas GmbH
was changed to Bayerische Motoren Werke or asand it's factories in Dingolfing and Landshut. In the
we know it, BMW.following years, the plants are both restructured and
In 1918, the Bavarian Motor Works become a publicsoon become the world's largest BMW facility.
company and it's first true success came with theIt was also during this period that BMW opened it's first
6-cylinder BMW IIIa, an aircraft engine that took amanufacturing facility outside of Germany in
biplane 5,000 meters into the sky in just under 30Spartanburg, South Carolina. Over the next twenty
minutes. In 1923 they introduced the first BMWyears, BMW quadrupled production of automobiles
motorcycle, the R32. The R32 continued to hold speedwhile tripling it's motorcycle production. In 1975, BMW
records for roughly the next ten years.North America was founded and set up corporate
In 1928, BMW began manufacturing automobiles andheadquarters in Woodcliff, New Jersey. Today, BMW
acquired the Eisenach Vehicle Factory in Germany.International also operates in Peru, Panama, Indonesia,
Specializing in large touring cars and sports cars, BMWJapan, Philippines, Australia, South Africa, Czech
seemed to be on track throughout the 1930's. It was atRepublic, France, Great Britain, Iceland, Italy, Portugal,
this juncture in the company's development that fateSwitzerland, Brazil, Latin America, Israel, Taiwan, New
intervened. With the close of WWII, Allied ForcesZealand, Austria, Netherlands, Sweden, Spain, Colombia
quickly dismantled the BMW factories and due to theand the Middle East.