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

After the end of World War I in 1918, BMW was forced to cease aircraft engine production by the terms of the Versailles Armistice Treaty. To remain in business, BMW produced farm equipment, household items and railway brakes.

The 303 was the first BMW to use a straight-6 engine. The M78 1182 cc six-cylinder engine was developed from the four-cylinder engine used in the 3/20.

The 328 was introduced at the Eifelrennen race at the Nürburgring in 1936, where Ernst Henne drove it to win the 2.0-litre class. The 328 had more than 100 class wins in 1937, including the RAC Tourist Trophy, the Österreichische Alpenfahrt, and the La Turbie hillclimb.

BMW began production of motorcycles in 1923, with the R32 model. The R32 established the boxer-twin, shaft-drive powertrain layout that BMW would use for many years to come.

The BMW 501 served an important function: it helped re-establish the automaker's reputation for creating high-quality, performance-oriented cars.

The 501 and its derivatives, including the V8 powered BMW 502, were nicknamed "Baroque Angels" by the German public because of their long curved, flowing lines reminiscent of the carved wooden designs from the Baroque era.

BMW acquired a licence to build the Dixi from the Austin Motor Company and started Manufacturing cars in 1929. The Dixi was equipped with a 747 cc four-cylinder engine that generated a total of 15 horsepower.

Initially intended to be exported to the United States at a rate of thousands per year, it ended up being too expensive, resulting in a total production figure of 252 cars and heavy losses for BMW.

Lamborghini was supposed to assist BMW in building a racing car, but the agreement dissolved in 1978 due to the Italian automaker's financial issues. BMW completed the project and the M1 became the first mid-engine car in the lineup.