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The company was founded in as a manufacturer of aircraft engines , which it produced from to and again from to creating engines for aircraft that were used in the Second World War. In , BMW was the world's ninth-largest producer of motor vehicles , with 2,, vehicles produced [ 3 ] and in the 7th largest by revenue.
The Quandt family [ de ] is a long-term shareholder of the company, following investments by the brothers Herbert and Harald Quandt in that saved BMW from bankruptcy , with the remaining shares owned by the public.
The name and Rapp Motorenwerke 's engine-production assets were transferred to Bayerische Flugzeugwerke in , who adopted the name the same year. Following the end of World War I, BMW remained in business by producing motorcycle engines, agricultural equipment, household items, and railway brakes. The company produced its first motorcycle, the BMW R 32 , in BMW became an automobile manufacturer in when it purchased Fahrzeugfabrik Eisenach, which, at the time, built the Austin 7 under licence from Dixi.
Throughout the s, BMW expanded its range into sports cars and larger luxury cars. 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. Again, the company survived by making pots, pans, and bicycles. In , BMW restarted motorcycle production. The range of cars was expanded in , through the production of the cheaper Isetta microcar under licence.
