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Bayerische Motoren Werke AG

Founders

Who Founded BMW?

Karl Rapp, Gustav Otto · Founded 1916 · HQ today: Munich, Germany

Who founded BMW?

BMW was founded by Karl Rapp, Gustav Otto in 1916. It is now led by Milan Nedeljković.

Founders
Karl Rapp, Gustav Otto
Founded
1916
Headquarters
Munich, Germany
Number of founders
2
Current CEO
Milan Nedeljković (since 2026)
Where was BMW founded?
BMW was founded in Munich, Germany in 1916.
When was BMW founded?
BMW was founded in 1916.
Who started BMW?
BMW was founded by Karl Rapp and Gustav Otto.
How old is BMW?
BMW is 110 years old as of 2026.

Founding Story

BMW's official founding date is 7 March 1916, when Bayerische Flugzeug-Werke was set up in Munich; the BMW name came from the 1917 reorganisation of Karl Rapp's Rapp Motorenwerke. Max Friz's BMW IIIa engine made the company's reputation in high-altitude flight. After the Treaty of Versailles banned German aircraft-engine production, BMW built the R 32 motorcycle in 1923 and bought Fahrzeugfabrik Eisenach in 1928 to make cars. That forced pivot from aircraft to road vehicles is the root of the modern premium brand.

Karl Rapp

Co-founder 1916

Background

Karl Rapp was a German mechanical engineer and aircraft-engine entrepreneur whose pre-BMW work centered on high-stress aviation powerplants. Before the BMW name became associated with cars, Rapp Motorenwerke operated in Munich's wartime engine ecosystem, where reliability, metallurgy, machining quality, and power-to-weight ratios mattered more than branding. His company struggled with technical and management pressures, but it supplied the industrial base from which BMW's engine identity emerged. Rapp's contribution was not a consumer product vision; it was the engineering premise that precision machinery could become a business. That premise survived his own departure and shaped BMW's long-term respect for engine performance, mechanical refinement, and technical credibility.

Role at Bayerische Motoren Werke AG

Bayerische Motoren Werke (BMW) traces its foundational roots not to automobiles, but to the skies above Germany during the First World War. The company's lineage is complex, born from the restructuring of aircraft engine manufacturer Rapp Motorenwerke by Karl Rapp in 1913. However, the true foundational architects of what would become the modern BMW were Franz Josef Popp, an Austrian engineer, and Camillo Castiglioni, a wealthy Viennese financier. During WWI, Rapp Motorenwerke was struggling with quality issues. Popp was dispatched by the Austro-Hungarian navy to inspect the facilities. Recognizing the potential, Popp took over management, brought in an effective engineer named Max Friz, and reorganized the company as BMW in 1917. Friz designed the well-known BMW IIIa aircraft engine, a high-altitude marvel that was superior to anything else in the German arsenal. Following the devastating defeat in WWI, the Treaty of Versailles explicitly banned Germany from manufacturing aircraft engines. Facing total annihilation BMW was forced to pivot. They survived by manufacturing railway brakes and eventually motorcycles (releasing the well-known R32 in 1923). The company did not even manufacture its first automobile until 1928, when it acquired the Automobilwerk Eisenach, which built a licensed version of the British Austin Seven. Following the horrific destruction of its factories during WWII, the company was once again brought to the brink of bankruptcy in 1959. It was saved from a hostile takeover by Mercedes-Benz through the financial intervention of Herbert Quandt, a powerful German industrialist. Quandt's investment preserved BMW's independence and funded the development of the 'New Class' sedans in the 1960s, which firmly established BMW's modern identity as the creator of the 'Ultimate Driving Machine.' The Quandt family continues to hold a controlling stake in the company today.

Karl Rapp was born in 1882 in Ehingen.

Gustav Otto

Co-founder 1916

Background

Gustav Otto was a Bavarian aviation entrepreneur and the son of Nikolaus Otto, whose internal-combustion engine work shaped modern transport. Before BMW's rise, Gustav Otto operated an aircraft manufacturing business in Munich, giving him direct exposure to aviation production, procurement cycles, factory organization, and the risks of a young technology market. His contribution to BMW's origin was industrial context rather than later brand management: he helped connect the emerging company to Bavaria's aircraft manufacturing base at a moment when aviation was important but commercially unstable. Otto's experience also linked BMW's story to the broader history of combustion engineering.

Role at Bayerische Motoren Werke AG

Gustav Otto's importance lies in the aviation world that made BMW possible. He founded an aircraft manufacturing company before BMW became associated with motorcycles or cars, and his operations formed part of the Bavarian industrial environment from which BMW emerged in 1916. Otto was not the executive who built BMW into a postwar premium-car brand, but his manufacturing activity helped establish the company's early connection to flight, engines, and technical ambition. After the aviation market was disrupted by World War I's aftermath, BMW had to pivot away from the world Otto knew best. His lasting influence is therefore indirect but real: BMW's identity began in a culture where mechanical reliability and engineering reputation were existential, not decorative.

Gustav Otto was born in 1883 in Cologne. Education: Technical University of Munich.

Bayerische Motoren Werke AG: CEO & Leadership History

Full timeline →

Milan Nedeljković

Chairman of the Board of Management (CEO)

2026 – Present

Took over from Oliver Zipse on 14 May 2026 after a career that began as a BMW trainee in 1993 and included senior roles at Plant Oxford, managing director of Plants Leipzig and Munich, senior vice president Corporate Quality and, from 2019, board member for Production. Within his first months he faced a June 2026 profit warning, agreed a voluntary-severance restructuring programme with the Works Council, and at the September 2026 Capital Market Day set a 3-5% automotive margin target for 2028 plus a 20% cut in divisions and management roles. His contract runs into 2031.

Oliver Zipse

Chairman of the Board of Management (CEO)

2019 – 2026

Zipse joined BMW in 1991 and led the group from 16 August 2019 to 13 May 2026, concluding 35 years with the company. He steered BMW through the COVID-19 pandemic and chip shortages, consolidated the BMW Brilliance joint venture in 2022, and kept a technology-open strategy across combustion, hybrid, electric and hydrogen drives when rivals were committing to EV-only plans. His signature project was the Neue Klasse, launched with the BMW iX3 in 2025. Record earnings in 2022-2023 gave way to falling margins in 2024-2025 as China weakened and tariffs rose.

Harald Krüger

Chairman of the Board of Management (CEO)

2015 – 2019

Krüger led BMW from May 2015 to August 2019, a period that included the launch of the X7 and the preparation of flexible vehicle architectures. He did not seek a second term amid criticism that BMW was moving too slowly on electrification and autonomous driving.

Norbert Reithofer

Chairman of the Board of Management (CEO)

2006 – 2015

Serving as CEO from 2006 to 2015, he maintained BMW's status as the world's best-selling premium automaker and spearheaded the company's early, massive investments in electrification.

Eberhard von Kuenheim

Chairman of the Board of Management (CEO)

1970 – 1993

BMW's longest-serving chief executive turned a mainly German carmaker into an international premium brand, launching the 3 Series (1975) and 7 Series (1977) and completing the 'Four Cylinder' headquarters tower in Munich.

Keep researching BMW

Who Founded BMW? FAQ

When and how was BMW originally founded in Munich, Germany?

BMW traces its origins to March 7, 1916, when aircraft engine manufacturer Bayerische Flugzeugwerke AG (BFW) was founded, and Rapp Motorenwerke (founded in 1913 by Karl Rapp) was reorganized into Bayerische Motoren Werke (BMW) GmbH in 1917.

Who were the primary founding figures behind the creation of BMW?

The founding figures of BMW were Karl Rapp (founder of Rapp Motorenwerke), Gustav Otto (founder of Otto Flugmaschinenfabrik and son of Nikolaus Otto, inventor of the four-stroke engine), mechanical engineer Max Friz, and industrial financier Camillo Castiglioni.

What was BMW's famous first engineering breakthrough in 1917?

In 1917, chief engineer Max Friz designed the BMW IIIa high-altitude aircraft engine, an inline-six engine featuring an advanced carburetor that allowed German fighter aircraft to operate at altitudes with leading fuel efficiency.

What is the true origin of the famous BMW roundel logo?

The BMW logo evolved from the Rapp Motorenwerke emblem and incorporates the national colors of the Free State of Bavaria (white and blue). While later 1929 advertisements romanticized it as a spinning white propeller against a blue sky, its true origin is Bavarian state heraldry.

What was the BMW R 32 and why is it well-known in motorcycle history?

Launched in 1923, the BMW R 32 was BMW's very first motorcycle. Designed by Max Friz, it featured a horizontally opposed twin-cylinder 'boxer' engine and shaft drive, a timeless mechanical layout that BMW Motorrad still utilizes over 100 years later.

When did BMW manufacture its very first automobile?

BMW entered automobile manufacturing in 1928 by acquiring Fahrzeugfabrik Eisenach, building the small BMW 3/15 PS (Dixi 3/15, based on the licensed Austin Seven) in 1929 before designing its own original BMW 303 in 1933 (which introduced the well-known kidney grille).

How did Herbert Quandt save BMW from bankruptcy and a Daimler-Benz takeover in 1959?

In December 1959, facing severe financial distress, BMW shareholders nearly voted to sell the company to rival Daimler-Benz. Industrialist Herbert Quandt intervened, bought a controlling equity stake, and funded the development of the 1962 BMW 1500 ('Neue Klasse'), saving BMW's independence.

What legacy did the founding engineers establish in BMW's DNA?

The founding engineers established BMW's enduring identity as an engine and dynamics specialist, pioneering the smooth inline-six engine, rigid chassis engineering, and the balanced 50:50 weight distribution that defines modern BMW vehicles.

Who founded BMW?

The company was forged from the restructuring of aircraft manufacturing firms founded by Karl Rapp and Gustav Otto, heavily financed by the wealthy investor Camillo Castiglioni.

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Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.