Background
Perhaps inevitably, the Second World War was devastating for BMW. When the National Socialists seized power in Germany in 1933, the country’s industrial base was soon directed to pursue a rearmament trajectory as a national priority. BMW, previously concerned with just cars and motorbikes, was soon being classified as an armaments company by dint of their significant radial aero-engine production. The company underwent stratospheric growth during the war years on the back of the German war effort. In 1933 the company employed 6,514 people and generated revenues of 35.56 million Reichsmark. By 1944, 56,213 workers were generating 750 million Reichsmark in revenues. Within just a year, of course, their fortunes would dramatically unravel as the Allied Forces flooded into a defeated Germany.
BMW’s status as an armaments company did them no favours in the immediate aftermath of hostilities. In October 1945 the US Military Government ordered BMW plants in Munich and Allach to be dismantled with the machinery to be shipped all over the world as war reparations. Amidst all the chaos BMW were only able organise production of household appliances until 1948 when the R24 motorcycle was launched to become the first post-war, wheeled BMW. The R24 did exceptionally well selling nearly 10,000 units in 1948 alone. This unexpected success steeled the BMW board to hasten back into car manufacture.
Various members of the BMW team busied themselves pursuing opportunities to manufacture other firms’ cars under license, as well as exploring the production of a tiny, economy model with an R24 motorcycle engine. Hanns Grewenig, the company’s sales director, was thinking big, however. He reasoned that BMW’s fledgling production capacity was better directed towards a luxury, prestige model and the high profit margins that would come with it. In short order his team designed a model that would be launched as the 501 at the inaugural Frankfurt Motor Show in 1951. With a price equivalent to three times the average German’s annual salary, the 501 was definitely a big-ticket offering. This perceived grandeur soon earned the 501 the nickname of “Barockengel," or Baroque Angel.