History and Overview of BMW

Introduction 

Our group’s task was to gather information on the history and profile of BMW. Our paper will show the historical timeline of changing events that lead the airplane engine manufacturer into the prestigious auto maker it is today. We will also give you an overview into the largely segmented portfolio that makes up the BMW GROUP thus ending our product of choice the MINI.

HISTORY OF…

Out of the Sky onto the Ground

Bayerische Motoren Werke (BMW) was founded on March 7th, 1916 by Franz Popp and Max Friz (Datamonitor). The company started out by making airplane engines for the German Army up until the end of WWI in 1918 (BMW Group). In 1923 the first BMW motorcycle left the production lines in Munich, Germany (Mergent). In 1928 BMW purchased their first car factory at Eisenech/Thuringia and with it, the license to build a small car called, “Dixi”. BMW also received the license agreement to build radial engines with the American aircraft engine manufacturer Pratt & Whitney. In 1929 the first “Dixi” was produced and their car manufacturing days began (Datamonitor).

In 1959 BMW was put up for sale because a slow year in sales left BMW in the red but small share holders, dealers and the workforce saved the company and by 1962 BMW released the 1500 model which established BMW’s place as the forerunner in sporty compact touring cars (Datamonitor). In 1965 BMW sold Triebwerkbau, the aircraft engine department of the company and stopped building aircraft engines until 1990; during which time BMW concentrated solely on building cars (Datamonitor).

In 1972, BMW Motorsport was founded, the first 5 series car was launched and an assembly plant in South Africa was built. The following year, the BMW 2002 Turbo became the first mass-produced turbo in the world and by 1979, BMW brought out the first digital engine electronics and they began work on hydrogen engines (Datamonitor). In 1981, BMW becomes the first European car manufacturer to establish a subsidiary in Japan. In 1993 BMW started offering their own financial services to their customers. BMW financial services was mainly started in an effort to increase sales in North America.

BMW Becomes Luxurious and MINI

In 1990, BMW joined up with Rolls Royce to become “BMW Rolls Royce” and once again began building airplane engines (Datamonitor). In 1994, the Rover Group which included the popular Mini name was added to the BMW Group portfolio. The Rover brand was sold to Phoenix Consortium in May of 2000, obtaining the Mini Cooper Brand was their goal when they made the Rover Group Purchase.

The purchase of the Mini Cooper had impeccable timing, in 1995 the Mini Cooper was named “Car of the Century” by Autocar Magazine and in 1996 Classics and Sportscar magazine names the Mini “No. 1 Classic car of all time.” In 1996 BMW changed the “Mini” logo to “MINI”. Later that same year, BMW announces that there will be a brand new MINI for the Millennium (BMW Group). In 1998 BMW bought the Rolls-Royce brand and by 2001 the first MINI was released. In 2002, nearly 144,120 new MINI’s had sold world wide giving BMW a new place in the automobile market the hatchback sector of the (Datamonitor). In 2004 BMW came out with more new models than ever before in its history, the new models included the MINI Convertible, BMW 1 Series, BMW X3, BMW 5 Series Touring, and the BMW 6 Series (BMW Group). This new line of products gave them a share in all of the major market segments (Datamonitor).

Following the Road to the Future

BMW has come a long way from making airplane engines for the German Army during World War One. After building their first motorcycle they built their first car, and then they improved their quality and workmanship by holding off on the airplane engine part of their business and concentrating on motorcycles and cars. Once they became well established in the automotive industry they went back to their roots and began making airplane engines once more. You may notice that BMW is often referred to as “BMW Group”. This is because BMW is not just a car or a motorcycle they build many different kinds of cars, other tangible products and offer intangible financial services. Throughout the history of BMW they have continually made themselves better and they have been able to change their market strategies cater to their customer’s needs and wants. Examining their past accomplishments, their current market status and their future possibilities will lead to the continuous growth in market share and brand recognition.

Company Profile

Corporate Strategy

Dr. Helmut Panke is the CEO of BWM, the world's 14th largest car company. With his doctorate in nuclear science as well as a deep appreciation for exquisite engineering, he is a precise man and highly dedicated to the company’s success.  

Join now!

Business

BMW Group is composed of many segments within its vast portfolio. They are focused on manufacturing a variety of tangible products, and offering many intangible financial services. The BMW Group’s automotive portion of their portfolio consists of the three premium brands: BMW, MINI, and Rolls-Royce. BMW is supported by nine different model series which are: BMW C1, BMW 1 series, BMW 3 series, BMW 5 series, BMW 6 series, BMW 7 series, BMW X3, BMW X5, and the BMW Z4. The newly acquired MINI brand is supported by the MINI Cooper and MINI Cabriolet. Rounding the top of the ...

This is a preview of the whole essay