BMW – a reputation built on quality without compromise
As an experienced driver, you know the importance of keeping your BMW in tip-top condition. Regular servicing will extend your car’s life and identify defects before they become catastrophic.
When you consider the history of BMW and how the Company has built its global reputation for prestige and performance excellence, booking a BMW service that is conducted with care and precision is vitally important in retaining the characteristics of this prestige car.
BMW facts you may not know
BMW has its roots in pre-First World War German aviation.
Gustav Otto, son of the inventor of the four-stroke internal combustion engine, set up an aircraft factory and training school in 1910. However, after persistent quality problems with production, his business was bought by a consortium in 1916. The company became known as Bayerische Flugzeugwerke AG (BFW) and began manufacturing aircraft under licence from Albatros Werke. It soon became the largest aircraft manufacturer in Bavaria, but at the end of the First World War demand collapsed.
Meanwhile, in 1913 an engine designer Karl Rapp had set up an aircraft engine manufacturing company, but vibration problems with their own engines meant that they switched production to Austro-Daimler V12 engines, under licence. A man called Franz Josef Popp was put in to supervise the manufacturing. He managed to persuade Karl Rapp to employ a talented design engineer from Daimler, Max Friz. Friz quickly designed a new engine and made such an impact with the investors, that Karl Rapp was ousted from the business in 1917. At this point the company name was changed from Rapp Motorenwerke GmbH to Bayerische Motorenwerke BmbH (BMW).
However, in December 1918, BMW was forced to close down by the government at the end of the First World War. However, in less than three months BMW was allowed to reopen and began designing a new array of engines, although the company was forced to cease aircraft engine production. At this point, an Austrian financier, Camillo Castiglioni, had become the majority shareholder in BMW.
In the summer of 1919, BMW began building brake assemblies under licence from Knorr-Bremse AG, and around a year later Castiglioni sold his shares in BMW to Knorr-Bremse.
Following the sale of his stake in BMW, Castiglioni became interested in purchasing BFW which he completed in 1922. On the back of this, he moved to purchase back the BMW name and engine building division from Knorr-Bremse. He was successful, and with the merger of BFW and BMW, under the BMW name, he also secured the design and management skills of Max Friz and Franz Josef Popp, plus valuable engine drawings and patents.
BMW began production of replacement engines, whilst Castiglioni did a lucrative deal with the Czechs to licence the production of BMW aircraft engines for use by their military.
During the 1920s, BMW supplied Russia with aircraft engines and Castiglioni, as well as being the majority shareholder, siphoned off a brokerage fee on every transaction to his ‘private’ companies.
Along with military engines, BMW began to successfully manufacture small agricultural engines and motorcycles, starting with the R 32 in 1923. These formed the basis of the project to design a BMW production car in 1925. Then in 1928 the company expanded into full car production with the purchase of the Eisenach Car Factory that made the Dixi (or Austin Seven manufactured under license). The car became known as the BMW 3/15 and it was not long before BMW was producing its own designs.
However, Castiglioni’s business dealings got himself and BMW into trouble. After selling a majority shareholding to Deutsche Bank in 1926, to raise personal funds, his irregular commission payments were duly revealed. He settled out of court with a large payment back to BMW and stepped down from the board. In 1929, he sold the remainder of his shared to Deutsche Bank to prop up his finances.
The Castiglioni affair had also cost BMW. The Russian government became aware of the ‘commission’ payments and demanded compensation. BMW handed over a licence to produce the BMW VI engine for free and relations with the Russians came to an end in the early 1930s.
After successful expansion of the motorcycle and car businesses in the 1930s, BMW was forced to abandon civilian production by the National Socialist Party during the Second World War and focus on the production of aircraft engines. This included the use of forced labour.
Towards the end of the war, BMW was hit hard by allied bombing and when the war ended, the sites in eastern Germany were seized by the Russians. Meanwhile, whilst BMW survived in the West, they were banned from manufacturing engines for three years and BMW car plans and their chief designer Fritz Fiedler were taken to England to begin Bristol Cars. And so it was not until 1948 that production of BMW motorcycles recommenced and not until 1952 that car production was started again.
The initial post-war car models, such as the 507 and 503, were not highly profitable and in 1959, BMW discussed selling the business to Daimler-Benz. This was an unpopular move with the workforce, and fortunately Chairman Kurt Golda increased his stake in the company to secure BMW’s independence.
During the 1960s the release of more sporty models spelt success for BMW. The BMW 1500 (that followed the BMW 700) led to the BMW 1600 and BMW 1800 models and in 1967 two door and convertible models that became known as the BMW 02 series. These developments eventually led to the creation of the famous BMW 3 series.
The company expanded, with new production facilities and a new headquarters in Munich.
Going into the 1970s, the BMW 5 series replaced the sedans, the coupes were replaced with the BMW 3 series and a new BMW 7 series was launched, thereby giving BMW three distinct sports sedan ranges that continued into the 1990s.
BMW became a global brand in prestige car manufacturing and sales increased 18 times. Production expanded from Germany and has spread to across continents, including facilities in the UK, America, South Africa and India. The company has also formed partnerships over time with Russian and Chinese producers.
In the mid 1990s, BMW bought Rover from British Aerospace. However, the company struggled to find a role for the English brands and make a profit. In 2000 it disposed of Rover to Phoenix Venture Holdings and sold the Land Rover brand to Ford. However, BMW retained the Mini, Triumph and other brands. BMW has since successfully rekindled the Mini brand and also gone on to secure full use of the Rolls Royce brand (in 2003).
From its humble origins as pre-First World War makers of aircraft and aircraft engines, BMW has survived as a result of post-war entrepreneurial spirit and grown rapidly to become a major global player in the prestige car market.
Book your BMW service with confidence
So when you book your next BMW service, you can be confident that Service A Car understands the heritage of BMW and conducts BMW servicing with the passion and precision your prestige car deserves.
Happy motoring,
Howard.
Chairman Service A Car
January 24, 2010 11:37 am | 
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