The Bavarian Motor Works was established in 1916. Originally building aircraft engines, at the end of World War I, they were forced by terms of the Versailles Armistice Treaty to end production, so they moved on to motorcycles. The first car from BMW was the Dixi based on the British Austin 7. World War II had them back in the aircraft engine business, with, in the end, not-so-great success.
By 1958, the automotive division was in a sad state. On the brink of insolvency, they decided to jump into the world of economy cars. They bought the rights to build the Italian Iso Isetta. The little car soon helped BMW get back on its feet.
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