BAYERISCHE MOTOREN WERKE AG

(BMW) German automaker noted for quality sports sedans and motorcycles. Headquarters are in Munich. The company was founded in 1929, and its motorcycles soon became famous for setting speed records. During World War II, BMW built the world's first jet airplane engines, used by the Luftwaffe, Germany's air force. After the war the company tried to move into the small-car market but found that it could not compete with Volkswagen's compact, inexpensive autos. By 1969 the company was on the verge of bankruptcy and owed the equivalent of U.S.$29,000,000 to the Bavarian government. In that year BMW finally began to pull out of its financial slump when it introduced its new line of cars. The cars were of conventional design but drove, and were priced, like sports cars. At about the same time, the company introduced a new series of motorcycles, which were particularly popular in the United States.