BMW Going on the Offensive

This was done through a series of acquisitions and joint ventures with various motorcycle and car companies. The company launched its first motorcycle model, BMW R32, in 1923. Though BMW once again entered the aircraft construction business in the early 1920s, after the restrictions were eased, it continued to focus on the automobile business. During the 1920s, BMW strengthened its competitive position in the German automobile market by introducing small and efficient vehicles. The company launched its first car model 'Dixi' in 1929, which was followed by BMW 315/1 and BMW 319/1 in 1934. In 1936, BMW introduced its first sports car model, the 238. Due to its lightweight construction, outstanding aerodynamics, high performance and elegance, the 238 became a major success in international motor racing events.

Until the 1950s, BMW brought out only a limited number of models; its focus was more on expanding operations outside Germany to other parts of Europe outside Germany. In 1956, the company introduced the BMW 507 roadster,⁴ which was equipped with a powerful 3.2 litre, 8-cylinder and lightweight metal engine with an output of 150 bhp. Not only did this unique model become extremely popular in Germany, it soon became one of the most desired cars in the automobile world. In the late 1950s, despite BMW's sustained efforts to emerge as a manufacturer of prestigious vehicles, the company came to the brink of bankruptcy on account of the decline in the motorcycle market. At the same time, it faced a takeover bid from Mercedes, another leading German automobile company...