BMW
After the end of World War I in 1918, BMW was forced to cease aircraft engine production by the terms of the Versailles Armistice Treaty. To remain in business, BMW produced farm equipment, household items and railway brakes. In 1922, former major shareholder Camillo Castiglioni purchased the rights to the name BMW, which led to the company descended from Rapp Motorenwerke being renamed Süddeutsche Bremse AG (known today as Knorr-Bremse). Castiglioni was also an investor in another aircraft company, called "Bayerische Flugzeugwerke", which he renamed BMW.The disused factory of Bayerische Flugzeugwerke was re-opened to produce engines for buses, trucks, farm equipment and pumps, under the brand name BMW. BMW's corporate history considers the founding date of Bayerische Flugzeugwerke (7 March 1916) to be the birth of the company.
History of BMW
While Donath was trying to find a car to build under licence, chief engineer Alfred Böning developed a prototype for a small economy car powered by a motorcycle engine. Called the BMW 331, the prototype used a 600 cc motorcycle engine, a four-speed gearbox, and a live rear axle. The body was designed by Peter Schimanowski and resembled a BMW 327 in miniature.
The BMW 331 was proposed for production to the management, where it was vetoed by sales director Hanns Grewenig. Grewenig, a banker and former Opel plant manager, believed that BMW's small production capacity was best suited to luxury cars with high profit margins, similar to the cars BMW made just before the war. To this end, he had Böning and his team design the 501.