Bayerische Motoren Werke AG, trading as BMW Group (commonly abbreviated to BMW (German pronunciation: [ˌbeːʔɛmˈveː] ), sometimes anglicised as Bavarian Motor Works), is a German multinational conglomerate manufacturer of luxury vehicles and motorcycles headquartered in Munich, Germany. The moniker "BMW " first came into use when the German firm Rapp Motorenwerke changed its name to Bayerische Motoren Werke GmbH (BMW GmbH) in 1917. Thereafter, in 1922, the name and assets of BMW GmbH were transferred to the aircraft manufacturer Bayerische Flugzeugwerke AG (formerly Otto Flugmaschinenfabrik), thereby giving rise to the company known today as BMW AG.
BMW AG's automobiles are marketed under the BMW, Mini, and Rolls-Royce brands while its motorcycles are marketed under the BMW Motorrad brand. In 2023, BMW became the world's ninth-largest producer of motor vehicles (with 2,555,341 vehicles made in that year alone) as well as the 6th largest automaker by revenue. In 2023, it was ranked 46th in the Forbes Global 2000. The company also has significant motor-sport history, especially in touring cars, sports cars, and the Isle of Man TT. BMW initially focused on aircraft engine production during World War I, a legacy that influenced the company's engineering emphasis on performance and precision. Known as "The Ultimate Driving Machine", the brand is celebrated for engineering vehicles that blend high-end luxury with sharp, driver-focused performance. Following postwar restrictions on aircraft manufacturing, BMW diversified into motorcycle production in the 1920s and later entered the automobile market, establishing itself as a major player in the automotive industry.
BMW AG is headquartered in Munich and produces motor vehicles in Germany, United Kingdom, United States, Brazil, Mexico, South Africa, India, and China. The Quandt family is a long-term shareholder of the company, following investments by the brothers Herbert and Harald Quandt in 1959 which saved BMW from bankruptcy, with remaining shares owned by the public.
BMW traces its origins to aircraft engine manufacturer Otto Flugmaschinenfabrik, founded in 1910 by Gustav Otto in the Kingdom of Bavaria, German Empire. On 18 August 1916, the firm was reorganized as Bayerische Flugzeugwerke (BFW). In 1922, BFW was renamed Bayerische Motoren Werke (BMW).
The name BMW, however, had earlier been used by a company founded in 1913 by Karl Rapp as Rapp Motorenwerke. In 1922, the name and engine-production assets of Rapp Motorenwerke were transferred to Bayerische Flugzeugwerke, which adopted the BMW name in the same year.
BMW's first products were aircraft engines for the Luftstreitkräfte. One of its early designs was the BMW IIIa, a straight-six engine developed in 1917 by engineer Max Friz. After World War I, BMW diversified into the production of motorcycle engines, agricultural equipment, household items, and railway brakes. In 1923, the company introduced its first motorcycle, the BMW R32.
BMW became an automobile manufacturer in 1928 following its acquisition of Fahrzeugfabrik Eisenach, which produced the Austin 7 under licence from Austin Motor Company, marketed as the Dixi. The first car sold as a BMW was the BMW 3/15, a rebadged version of the Dixi. During the 1930s, BMW expanded its product range to include sports cars and larger luxury vehicles.
Aircraft engines, motorcycles, and automobiles would be BMW's main products until World War II. During the war, BMW concentrated on building the BMW 801 aircraft engine using as many as 40,000 slave laborers. These consisted primarily of prisoners from Nazi concentration camps, most prominently Dachau. Motorcycles remained as a side-line and automobile manufacture ceased altogether.
BMW's factories were heavily bombed during the war and its remaining West German facilities were banned from producing motor vehicles or aircraft after the war. The company survived by making pots, pans, and bicycles. In 1948, BMW restarted motorcycle production. BMW resumed car production in Bavaria in 1952 with the BMW 501 luxury saloon. The range of cars was expanded in 1955, through the production of the cheaper Isetta microcar under licence. Slow sales of luxury cars and small profit margins from microcars, meant BMW was in serious financial trouble and in 1959 the company was nearly taken over by rival Daimler-Benz.
A large investment in BMW by Herbert Quandt and Harald Quandt resulted in the company surviving as a separate entity. Günther Quandt was a well-known German industrialist and joined the Nazi Party in 1933; he made a fortune arming the Wehrmacht, manufacturing weapons and batteries. Many of his enterprises were appropriated from Jewish owners under duress with minimal compensation. At least three of his enterprises made extensive use of slave laborers, as many as 50,000 in all. One of his battery factories had its own on-site concentration camp, complete with gallows. Life expectancy for laborers was six months. While Quandt and BMW were not directly connected during the war, funds amassed in the Nazi era by his father allowed Herbert Quandt to buy BMW.
The relative success of the small BMW 700 assisted in the company's recovery, allowing them to develop the New Class sedans.
The 1962 introduction of the BMW New Class compact sedans was the beginning of BMW's reputation as a leading manufacturer of sport-oriented cars. Throughout the 1960s, BMW expanded its range by adding coupé and luxury sedan models. The BMW 5 Series mid-size sedan range was introduced in 1972, followed by the BMW 3 Series compact sedans in 1975, the BMW 6 Series luxury coupés in 1976 and the BMW 7 Series large luxury sedans in 1978.
The BMW M division released its first road car, the M1, a mid-engine supercar, in 1978. This was followed by the BMW M5 in 1984 and the BMW M3 in 1986. Also in 1986, BMW introduced its first V12 engine in the 750i luxury sedan. The 1989 BMW Z1 marked BMW's return to making a two-seat roadster, the 1995 BMW Z3 was their first mass-production two-seat roadster, and the 1999 BMW X5 was the company's first entry into the SUV market.
The company purchased the Rover Group in 1994, but the takeover was not successful and caused BMW large financial losses. In 2000, BMW sold off most of the Rover brands, retaining only the Mini brand. In 1998, BMW also acquired the rights to the Rolls-Royce brand from Vickers.
BMW's first modern mass-produced turbocharged petrol engine was introduced in 2006 (from 1973 to 1975, BMW built 1,672 units of a turbocharged BMW M10 engine for the BMW 02 Series), with most engines switching over to turbocharging over the 2010s. The first hybrid BMW was the 2010 BMW ActiveHybrid 7, and BMW's first mass-production electric car was the BMW i3 city car, which was released in 2013, (from 1968 to 1972, BMW built two battery-electric BMW 1602 Elektro saloons for the 1972 Olympic Games). After many years of establishing a reputation for sporting rear-wheel drive cars, BMW's first front-wheel drive car was the 2014 BMW 2 Series Active Tourer multi-purpose vehicle (MPV).
In March 2018, Daimler and BMW merged their mobility services. In August 2019, Oliver Zipse replaced Harald Krüger as the head of the BMW Group. In May 2026, Milan Nedeljković succeeded Zipse as chairman of the board of management of BMW AG.
In January 2021, BMW announced that its sales in 2020 fell by 8.4 percent due to the impact of COVID-19 pandemic restrictions. However, in the fourth quarter of 2020, BMW witnessed a rise of 3.2% in its customers' demands. This recovery was supported by the company's adoption of widely accepted technologies and integration of third-party services such as Apple Pay and on-demand music as well as key partnerships such as its collaboration with Daimler on autonomous driving. Additionally, BMW's strategic investment decisions which include localizing production of its SUVs to the Spartanburg plant in the U.S., placed the group in a position to easily navigate trade challenges and shifting consumer patterns.