BMW shares: From aircraft engine manufacturer to global premium brand
What began in 1916 as an aircraft engine company is now a leading global automobile company with billions in sales and strong innovative strength. Through crises, strategic realignments and technological progress, BMW has developed into one of the best-known brands in the world.
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Shares
89.24 EUR 0.34 EUR 0.38%
29.90 EUR 0.24 EUR 0.81%
57.80 EUR 0.06 EUR 0.10%
15.08 EUR 0.32 EUR 2.17%
• BMW produces aircraft engines as part of the rearmament (1933-1945)
• First BMW mid-range model “Neue Klasse” introduced in 1961
• BMW is investing in hydrogen cars and electromobility
A historical origin
BMW has its origins in the aircraft engine manufacturer Rapp-Motorenwerke GmbH. The headquarters of the Rapp-Motorenwerke was in Munich – as were the production facilities of the Gustav Otto Flugmaschinenfabrik, where the aircraft engines manufactured were installed in aircraft. After the Otto Flugmaschinenfabrik went bankrupt in 1916, Bayerische Flugzeugwerke AG (BFW) emerged. The Rapp-Motorenwerke also changed its name a year later – from now on the Rapp-Motoren Group was called Bayerische Motoren Werke GmbH (BMW).
In the summer of 1918, the Bavarian Motor Works was converted into a stock corporation (AG). But the Versailles Peace Treaty brought an abrupt end to the construction of aircraft engines – due to the ban on the production of aircraft engines, BMW shifted its main focus to railway brakes and built-in engines. Since this was quite successful, the Berlin company Knorr-Bremse AG took over the majority of BMW in 1920 – the Bavarian Motor Works initially no longer existed as an independent company.
New beginnings, war and reconstruction
With the purchase of the Eisenach vehicle factory in 1928, BMW entered automobile production. The first series car rolled off the production line there in 1929, followed by technically more independent models such as the AM 1 and the 303 with a six-cylinder engine, which is considered the first unmistakable BMW automobile. During the Nazi era, the focus shifted again to aircraft engines, which accounted for up to 90 percent of sales. In addition to workers, forced laborers and concentration camp prisoners were also used in production. At the same time, successful automobiles such as the 326, 327 and the sports roadster 328 were created, whose racing successes had a lasting impact on the brand’s image.
After the Second World War, the Munich factory lay in ruins, while the Eisenach factory was under Soviet control and initially continued to produce pre-war models. After a legal dispute, the name BMW was no longer allowed to be used there, and the factory from then on operated as EMW. In Munich, BMW began repair work and everyday products before motorcycle production resumed in 1948 with the R 24. The first post-war car followed in 1951, the elaborately produced BMW 501, which, however, caused high losses. A planned takeover by Daimler-Benz (now Mercedes-Benz Group) ultimately failed due to resistance from the workforce and small shareholders, who opposed the sale and thus preserved the company’s independence – despite Deutsche Bank’s 50 percent share.
Strategic expansion and brand diversity
With Herbert Quandt’s entry in 1960, BMW received the financial resources to develop the mid-range car “Neue Klasse”, the success of which brought the economic breakthrough from 1961 onwards and laid the basis for international growth. Under CEO Eberhard von Kuenheim, the group expanded significantly from 1970 onwards, significantly increasing sales and the number of employees and opening up new foreign markets, including Austria, South Africa and the USA.
The takeover of the Rover Group in 1994 proved to be costly and ended in 2000 with the separation of almost all brands except Mini, while BMW specifically strengthened the luxury segment with Rolls-Royce from 2003. Since 2008, the group has also been promoting electromobility and alternative drives and developed into one of the world’s most valuable automobile brands into the 2020s.
Innovation and electromobility
Another milestone is the BMW i3 electric vehicle. Unlike its predecessor of the same name, which debuted years ago as a compact electric pioneer, the new i3 is an electric version of the 3 Series mid-range series. The model is offered as both a sedan and a touring station wagon and relies on classic vehicle concepts, combined with the latest 800-volt technology, high charging performance and variable drive options. It will be closely related to the architecture of the iX3 and enable ranges that go beyond previous electric cars. Vehicles of the new i3 are already rolling off the production line at the BMW plant in Munich in pre-series production.
BMW is pursuing strategic initiatives to increase sustainability in production and product life cycles. In collaboration with partners such as PreZero, the company is driving the circular economy, which includes, among other things, recycling materials and minimizing waste. Such measures are part of the group’s long-term responsibility orientation.
outlook
Today, BMW is one of the world’s top-selling manufacturers in the premium automobile market and is represented with a strong brand in over 140 countries. The combination of historical tradition, innovative strength, strategic brand management and the clear focus on future mobility technologies makes the group equally relevant for financial market participants, customers and industry observers.
Editorial team finanzen.net