Winter 1918 factory closure
In order to enable companies to resume civil production as rapidly as possible, a central demobilization office was set up as soon as the war was over, and branches opened right across Germany. The Commissioner for Demobilization with responsibility for Bavaria ordered the closure of BMW’s Munich plant with effect from 6 December 1918.[5]
Return of Castiglioni and merger with BFw
On 20 May 1922, Castiglioni bought the BMW name and engine-building business from Knorr-Bremse for 75 million reichsmarks. The remainder of the company became a subsidiary of Knorr-Bremse and was renamed Süddeutsche Bremse AG.[9]
Castiglioni did not purchase BMW's premises in his transaction with Knorr-Bremse. Instead, he merged his Bayerische Flugzeugwerke (BFw) into BMW and established BMW's factory and headquarters at BFw's premises. BMW was moved into the same buildings of Gustav Otto's former Otto-Flugzeugwerke on Lerchenauer Straße 76. BMW's headquarters have been at that address ever since.[3][9][10][11]
Automobiles[
Austin-licensed BMW Dixi
BMW's first automobile, the BMW Dixi
In 1928, BMW bought the Eisenach-based Dixi Automobil Werke AG from Gothaer Waggonfabrik. Dixi's sole product at the time of the purchase was the 3/15 PS, a licensed copy of the Austin 7, production of which had begun in 1927. The Dixi 3/15 became the BMW 3/15, BMW's first production car, upon the absorption of Dixi Werke into BMW.[12]
BMW designs its own cars[
Towards the end of 1930, BMW attempted to introduce a new front axle with independent wheel suspension for both their models, the BMW 'Dixi' 3/15 DA4 and BMW 'Wartburg' DA3, but this resulted in accidents with the prototypes because of construction faults.[13]
Six-cylinder cars
In 1933, BMW introduced the 303.[14][15] Larger and more conventional than the AM-series 3/20, the 303 used BMW's new M78 engine, making it the first BMW automobile to use a straight-six engine.[15][16] The 303 was also the first BMW to use the "kidney grille" that would become a characteristic of BMW styling.[17] The 303 formed the basis for the four-cylinder 309 and the larger-engined 315 and 319,[18][19] while the 303 chassis supported the 315/1 and 319/1 roadsters[18][20] and the restyled 329.[21]
The 303 platform was supplemented and later supplanted by the 326, a larger car with a more rigid frame. Introduced in 1936, the 326 was BMW's first four-door sedan.[22][23] A shortened version of the 326 frame was used in the 320, which replaced the 303-framed 329, in the 321, which replaced the 320, and in the 327 coupé.[24][25]
The 328 replaced the 315/1 and 319/1 roadsters in 1936. Unlike the 303-based 315/1 and 319/1, the 328 had a purpose-built frame.[21] While the 315/1 and 319/1 had M78 engines in a higher state of tune than in the respective 315 and 319 sedans,[26] the 328's M328 engine had a specially-designed hemispheric cylinder head and other modifications that brought its power to 80 PS (59 kW).[27] From its introduction at the Eifelrennen race at the Nürburgring in 1936, where Ernst Henne drove it to win the 2.0 litre class,[21][28] to the overall victory of Fritz Huschke von Hanstein at the 1940 Brescia Grand Prix during World War II,[29][30] the 328 was a legendary performer, with more than 100 class wins in 1937 alone.[31]
An extended version of the 326's frame was used in the 335, a luxury car with the 3.5 litre M335 engine.[32] The 335 was built from 1939 to 1941.[33]
World War II
BMW 801 radial engine
The German invasion of Poland and commencement of hostilities meant that manufacturing facilities in Germany were directed by the Naziregime to re-focus on the manufacture of products required to support the war effort. In 1939, BMW bought Spandau-basedBrandenburgische Motorenwerke, also known as Bramo, from the Siemens group of companies and merged it with its aircraft engine division under the name BMW Flugmotorenbau GmbH. A new factory at Allach, outside Munich, began production of aircraft engines later that year.[34]
BMW R75 military sidecar outfit
BMW 003 jet engine
A wide range of aero engines was ultimately produced for the Luftwaffe, including one of the most powerful engines of the time – the BMW 801. Over 30,000 aero engines were manufactured through 1945, as well as over 500 jet engines such as the BMW 003. To enable this massive production effort, forced labor was utilized, consisting primarily of prisoners from concentration camps such as Dachau.[35] By the end of the war, almost 50% of the 50,000-person workforce at BMW AG consisted of prisoners from concentration camps.[36] BMW also developed some military aircraft projects for the Luftwaffe towards the last phase of the Third Reich, the BMW Strahlbomber, the BMW Schnellbomber and the BMW Strahljäger, but none of them were built.[37]
Second crisis for BMW AG – WWII aftermath
R24 motorcycle
BMW AG was heavily bombed towards the end of the war, reducing most of the company's production facilities to rubble. In fact, by the end of the war, the Munich plant was completely destroyed.[38] BMW sites in eastern Germany (Eisenach-Dürrerhof, Wandlitz-Basdorf andZühlsdorf) were seized by the Soviets.
After the war the Munich factory took some time to restart production in any volume. BMW was banned from manufacturing motor vehicles by the Allies. During this ban, BMW used basic secondhand and salvaged equipment to make pots and pans, later expanding to other kitchen supplies and bicycles. Permission to manufacture motorcycles was granted to BMW by United States authorities in 1947, and production of the R24 began in 1948.[39]
East German 340 with BMW badge
In the east, the company's factory at Eisenach was taken over by the Soviet Awtowelo group.[39][40]Production of the R35 motorcycle was restarted in 1945,[40] with the 321 automobile following late that year.[41][40] A mildly revised 327 entered production in 1948, followed by the 326-based 340 in 1949. These were sold under the BMW name with the BMW logo affixed to them.[42] To protect its trademarks, BMW AG legally severed its Eisenach branch from the company. Awtowelo continued production of the 327 and 340 under the Eisenacher Motorenwerk (EMW) brand with a red and white version of the logo until 1955.[39]
1948 Bristol 400 with double-kidney grille
In the west, the Bristol Aeroplane Company (BAC) inspected the factory, and returned to Britain with plans for the 327 model and the six-cylinder engine as official war reparations. Bristol then employed BMW engineer Fritz Fiedler to lead their engine development team. In 1947, the newly formed Bristol Cars released their 400 coupé, a lengthened version of the BMW 327. that featured BMW's double-kidney grille.[43]
While Alfred Böning had returned to BMW and developed the R24[39] and Fritz Fiedler had gone to work for Bristol,[43] Alex von Falkenhausen and Ernst Loof had each started companies that built sports cars and racing cars. Von Falkenhausen started Alex von Falkenhausen Motorenbau (AFM), while Loof, in partnership with Georg Meier and Lorenz Dietrich, started Veritas. AFM and Veritas both competed in Formula 2, but both companies had shut down operations by 1954, when both von Falkenhausen and Loof went back to BMW.[44][45]
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