BMW, Spreading Sheer Driving Pleasure From Bavaria to the World

BMW was founded by Franz Josef Popp, Karl Rapp, Camillo Castiglioni. Initially, it was Rapp Motorenwerke, an aircraft manufacturing firm. In 1918; however, after the First World War, the manufacturing unit of the firm was forced to stop making aircraft engines and they switched to motorcycle production in 1923.

Soon after, the brand started producing and manufacturing motorcycles on a commercial scale. A few years later in 1930, the company was given a green signal for the aircraft manufacturing unit following the removal of the treaty.

However, the company faced stiff financial crisis in 1959 and it was decided that instead of liquidifying the organization, they will switch over to new sector of the automobile manufacturing.

BMW produced its first aircraft engine in 1918 which was called as BMW IIIa. The engine gained appraisal from the consumers for its electrifying performance and agility. Soon after they produced jet-engine and Warcraft designs for World War II.

Manufacturing Cars

BMW acquired Hans Glas Company in 1966, owing to their switch as automobile manufacturing unit. BMW's fist car was named as 'Dixi', based on its Austin 7 model. In the year 1992, BMW acquired a large California based stake industrial design studio for the production and development in US.

Two years later they acquired British Rover Group. This group was a merger of the Rover at the same time, with Land Rover and MG brands including few inputs from Austin and Morris. Owing to the loss of Rover in 2000, BMW sold it to the Phoenix Consortium which was later acquired by Ford.

Owing to the quality and the manufacturing process involved in the development of each automobile, BMW has been voted as the most successful automobile production unit with 1,845,186 automobiles and 117,109 motorcycles as of 2012. The production of BMW automobiles and motorcycles has seen a steep rise over the last couple of years.

Successful Years and Racing History

With current estimate of more than 6 assembly operations across Middle-East, South-East, Russia and Egypt, BMW is reported to have increased the production of the automobiles specifically to meet the market demands. Besides being a brand name in luxury automobiles and motorrads, BMW earned great success at different Formula One races. According to the recent report, more than 20 BMWs are participating in the Formula One. BMW cars tasted success at different events, most recent being the BMW Sauber F1 Team at Canadian Grand Prix in 2008.

BMW is a proud sponsor of different sporting events and leagues including various football clubs, events at Olympics, United States Olympic Committee, European golf events and PGA Championship including BMW International Open and BMW Italian Open in Germany. BMW markets its production with the customary BMW blue and white logo. The logo is derived from the ancestral Rapp Motorenwerke company circular logo, including the colors of Bavarian flag.

CEO

Oliver Zipse, born on February 7, 1964, in Heidelberg, Germany, has been the Chairman of the Board of Management (CEO) of BMW AG since August 16, 2019. His tenure at BMW began in 1991, and he has dedicated his entire professional career to the company.

Educational Background:

• Zipse studied computer science and mathematics at the University of Utah from 1983 to 1985.
• He then pursued mechanical engineering at the Technische Universität Darmstadt, graduating in 1991.
• In 1999, he completed the Kellogg-WHU Executive MBA Program, a joint degree from the Kellogg School of Management in the U.S. and WHU – Otto Beisheim School of Management in Germany.

Career Progression at BMW:

• 1991: Joined BMW as a trainee in development, technical planning, and production.
• 1992-1994: Served as a project engineer in technology development.
• 1994-2006: Held various leadership roles in development, production, and production planning in Munich and South Africa.
• 2007-2008: Managed the MINI plant in Oxford, UK.
• 2009-2012: Led technical planning.
• 2012-2015: Headed group planning and production strategy.
• 2015-2019: Served on the Board of Management, overseeing production.
• 2019: Appointed as CEO of BMW AG.

Recent Developments: In October 2024, Zipse expressed concerns about the European Union's planned 2035 ban on gasoline vehicles, warning that it could "threaten the European automotive industry in its heart" and increase reliance on Chinese batteries.

Additionally, in May 2024, he cautioned against imposing EU import duties on electric vehicles from Chinese automakers, suggesting that such measures could backfire and hinder the EU's Green Deal industrial plan.

Manufacturing Sites

With 4 operating divisions - BMW Motorrad, Mini, BMW Motorsport and BMWi, the company was able to generate revenue of €76.84 billion as of 2012. According to reputed magazines and surveys, BMW has its name listed among the top automobile manufacturers and among top 20 best technical companies to work with.

Owners

Susanne Klatten and Stefan Quandt  are prominent German billionaires and key figures in the automotive industry, primarily due to their significant ownership stakes in BMW.

Family Background and Inheritance

Their father, Herbert Quandt, was instrumental in rescuing BMW from bankruptcy in 1959, securing the company's future as a leading luxury automobile manufacturer. Upon Herbert's death in 1982, his substantial holdings in BMW were inherited by his third wife, Johanna Quandt, and their two children, Susanne and Stefan.

Susanne Klatten

Born on April 28, 1962, Susanne Klatten pursued studies in business and economics, earning an MBA from IMD Business School in Lausanne, Switzerland. She holds a 19.2% stake in BMW and serves on its supervisory board. Beyond BMW, Klatten has transformed Altana AG, a chemical company, into a leading specialty chemicals corporation. She also has investments in SGL Carbon SE and Entrust Datacard.

Stefan Quandt

Born on May 9, 1966, Stefan Quandt studied economics and engineering at the University of Karlsruhe. He inherited a 17.4% stake in BMW, which he has since increased to 23.7%. Quandt joined BMW's supervisory board in 1997 and holds stakes in companies like Logwin and Heel.

Current Ownership and Influence

As of 2023, the ownership structure of BMW is as follows:

• Stefan Quandt: 25.8%
• Susanne Klatten: 20.9%
• Public Float: 50%

This distribution underscores the Quandt family's significant influence over BMW's strategic direction.

Sponsorships

BMW actively engages in sponsorships across various domains, including motorsports, arts, and community events, to enhance its brand visibility and align with its core values of performance, innovation, and sustainability.

Motorsport Sponsorships:

BMW's involvement in motorsports is extensive, encompassing partnerships with teams and events in disciplines such as Formula E, DTM (Deutsche Tourenwagen Masters), and endurance racing. These collaborations not only showcase BMW's engineering excellence but also reinforce its commitment to sustainable technologies. For instance, BMW's partnership with Andretti Motorsport in Formula E highlights its focus on electric vehicle innovation.

Arts and Cultural Sponsorships:

Beyond sports, BMW invests in the arts to foster cultural engagement. A notable example is its partnership with Sky Arts, where BMW serves as the channel's largest-ever sponsor. This collaboration emphasizes shared values of innovation, design, performance, and sustainability, creating immersive cultural experiences for audiences.

Community and Event Sponsorships:

BMW also supports community initiatives and events. The BMW Car Club of America (BMW CCA) hosts national events like O'Fest, Legends of the Autobahn, and the BMW Corral at the Pittsburgh Vintage Grand Prix, offering sponsorship opportunities that allow companies to connect with BMW enthusiasts and showcase their products.

Application Process for Sponsorships:

Organizations seeking sponsorship from BMW are typically required to complete an online application detailing their mission, history, event specifics, and proposed benefits for BMW. The review process may take up to 60 days, and BMW emphasizes alignment with its values and objectives in selecting sponsorship partners.