1913–1918: World War I

BMW's origins can be traced back to three separate German companies: Rapp Motorenwerke, Bayerische Flugzeugwerke and Automobilwerk Eisenach.

The history of the name itself begins with Rapp Motorenwerke, an aircraft engine manufacturer which was established in 1913 by Karl Rapp. A site near the Oberwiesenfeld was chosen because it was close to Bayerische Flugzeugwerke (then called Otto Flugmaschinenfabrik), with whom he had contracts to supply his four-cylinder aircraft engines. Rapp was also sub-contracted by Austro-Daimler to manufacture their V12 aircraft engines, under the supervision of Franz Josef Popp who was delegated to Munich from Vienna. Popp did not restrict himself to the role of observer, becoming actively involved in the overall management of the company.

In April 1917, following founder Karl Rapp's departure, Rapp Motorenwerke was renamed Bayerische Motoren Werke (BMW). (p11) BMW's first product was the BMW IIIa aircraft engine. The IIIa engine was known for good fuel economy and high-altitude performance. The resulting orders for IIIa engines from the German military caused rapid expansion for BMW. The large orders received from the Reichswehr for the BMW IIIa engine were overwhelming for the small company, however government officials in the relevant ministries were able to give BMW extensive practical support for the rapid expansion and funding to build a new factory near BMW's existing workshops. The German Empire did not, however, wish to go on supporting BMW with loans and guarantees, and therefore urged the flotation of a public limited company.

The name-change to Bayerische Motoren Werke compelled management to devise a new logo for the company, therefore the famous BMW trademark is designed and patented at this time. However, they remained true to the imagery of the previous Rapp Motorenwerke emblem. Thus, both the old and the new logo were built up in the same way: the company name was placed in a black circle, which was once again given a pictorial form by placing a symbol within it. By analogy with this, the blue and white panels of the Bavarian national flag were placed at the center of the BMW logo. Not until the late 1920s was the logo lent a new interpretation as representing a rotating propeller.

BMW's corporate history considers the founding date of Bayerische Flugzeugwerke (7 March 1916) to be the birth of the company.