On July 21, 1913, Bayerische Motoren Werke – BMW was founded in Munich.
In 1913, in the northern part of Munich, Karl Rapp and Gustav Otto, son of Nikolaus August Otto, founded two small aircraft engine companies. The beginning of World War I immediately caused a flood of orders. Therefore, Rapp and Otto decided to unite in one aircraft factory. Thus, the aircraft engine company was founded in Munich, which was registered on July 21, 1917 under the name Bavarian Motor Works. The enterprising Franz-Josef Popp was appointed director of the factory.
In 1916, the company signed a contract to produce V12 engines for Austria-Hungary. In need of financing, Rapp received the support of Camillo Castiglioni and Max Fritz. In 1917, Rapp left and the company was taken over by the Austrian Franz Josef Popp, and in 1918 it was renamed BMW AG. After the end of World War I, aircraft production in Germany was banned and BMW reoriented itself to the production of train brakes.
In 1923, BMW built its first motorcycle, the R32, with a displacement of 500 cc and air cooling. In 1927, the company Fahrzeugfabrik Eisenach AG in Eisenach began production of the Dixi passenger car (based on the Austin 7) under license from the Austin Motor Company (later part of Rover). Following its desire to enter the automotive business, BMW purchased the Eisenach company and the Dixi became BMW's first car. In the following years, BMW expanded its production by producing 6-cylinder sports cars and sedans. They produced the 327 coupe and convertible and the 328 roadster, as well as the 335 - a luxury sedan, recalls radio “Darik“.
A curious fact is that the white-and-blue round BMW emblem created then is still used today. However, the impression that the emblem represents a rotating propeller is wrong. In fact, white and blue represent the colors of Bavaria.