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may 15, 2020 - BMW

Learning from crises, mastering challenges

Historic flashback to celebrate the 100th Annual General Meeting of the BMW Group. Since its establishment more than 100 years ago, the company has always generated new impetus from overcoming particularly difficult situations. Innovative strength and courage, determination and team spirit form the foundation for this innate spirit of renewal.

Munich. Over more than 100 years of history at the BMW Group, there have been many events that have presented the business with exceptional challenges – much like the current situation. Lots of highs and some lows have been encountered on the pathway from the modest aero-engine factory to the status of leading premium manufacturer of automobiles and motorcycles. Celebrating the occasion of its 100th Annual General Meeting, the BMW Group looks back to key moments in the development of the company and remembers how the associated difficulties were overcome.

Every crisis – and this also applies to the present – entails an opportunity to emerge with renewed strength. What powers are necessary to achieve this? A company with innovative strength that embraces change and is geared to the future. A company producing pioneering products with the courage to develop unique solutions and the indomitable will to compete with the best. Then you also need a highly motivated workforce that is always willing to go the extra mile. These capacities, abilities and skills have always empowered the company to overcome setbacks, surmount crises and master new challenges. The prism of history and key corporate indicators from more than 100 years show how crisis situations have repeatedly provided the launchpad for developing renewed strength and continuing the success story of the BMW Group.

 

1919: Reliable engines are required – not just in the air.

During the First World War, the fledgling company was only manufacturing one product: the BMW Illa aeroengine. The 6-cylinder inline engine had the reputation of being the best aero-engine of its era. Its design principle was now transferred to the successor model – and the superiority of the technology was proven with a World Record. On 17 June 1919, an aircraft powered by the BMW IV aeroengine took a pilot to an altitude of 9 760 metres for the very first time. Never before had an aircraft flown so high. But after the end of the war, production of aero-engines was prohibited in Germany. New ideas had to be generated so that the expertise in building engines could continue to be applied productively. Consequently, BMW expanded its product range. Power units were marketed as the “Bayern-Motor” or “Bavaria Engine”, which in common with the aero-engines featured reliable and fuel-efficient operation. They were mounted primarily in boats, trucks and buses.

 

1923: From engine supplier to motorcycle manufacturer.

Reliability was also the chief hallmark of the “Bayern-Kleinmotor” (Bavaria Small Engine). The first Boxer engine from BMW was only supplied to other manufacturers. The main purchaser was Nuremberg-based company Victoria, which very successfully mounted the engine in its motorcycles. But when Victoria moved over to using an engine the company had developed in-house, BMW’s sales collapsed. In this situation, the company management made the daring move of taking a big leap forward. Chief Designer Max Friz was commissioned to develop a complete motorcycle. The BMW R 32 was presented at the German Motor Show in 1923. While other manufacturers were still focused on the geometry of bicycles, Friz had consistently designed the BMW R 32 around the engine. For the first time, a twin Boxer engine was mounted in the model with the cylinders arranged transverse to the direction of motion. When motorcycle manufacture started up again, BMW was transformed from an engine supplier into a vehicle manufacturer.