The acronym BMW stands for “Bayerische Motoren Werke” GmbH, which roughly translates to the Bavarian Engine Works Company. The name harks back to the company’s origin in the German state of Bavaria. It also indicates BMW’s original product range: engines for various applications.
Rapp Motorenwerke becomes BMW
Rapp Motorenwerke had its headquarters in the Bavarian capital, Munich – as did the factory where the engines were fitted into the aircraft, Gustav Otto Flugmaschinenfabrik. When the Otto company went bankrupt in 1916, it became Bayerische Flugzeugwerke AG (BFW). Shortly afterward, Rapp also changed its company name: In 1917, the company became known as Bayerische Motoren Werke GmbH. BMW’s origin in the Rapp company can also be seen on the logo.
The BMW name vanishes – for a time
In August 1918, Bayerische Motoren Werke GmbH became a stock corporation. But the end of the First World War brought a halt to the construction of aircraft engines, as the Treaty of Versailles forbade Germany from building them. So BMW shifted its focus to railway brakes and built-in motors. This was so successful that the Berlin-based brakes company Knorr-Bremse AG took majority ownership of BMW in 1920, integrated the company, and relocated to Munich. Bayerische Motoren Werke GmbH as an independent company disappeared temporarily from the scene – albeit not for long.
BMW founding, take two!
In 1922, the major investor and aircraft construction pioneer Camillo Castiglioni was the main shareholder of Knorr-Bremse AG. He bought the BMW company name and took over engine construction operations, along with the employees, production facilities, and company logo, and transferred everything to BFW, Bayerische Flugzeugwerke AG.
