New Areas of Business
The rise of BMW to one of Bavaria’s and Germany’s big industrial companies began in 1922 under Popp’s management. The product range of BMW AG was expanded and soon it extended beyond engines for the aircraft industry to include motorcycles as broader sections of the population gained access to motorized transport. This was an area to which Popp devoted considerable attention. Under his chairmanship, BMW AG further expanded its product range and know-how in 1928 by purchasing the vehicle manufacturing factory Fahrzeugfabrik Eisenach (FFE). This was the first time that cars bore the BMW brand on the roads.In 1928, Popp also concluded a license agreement with the US American company Pratt & Whitney, allowing BMW to manufacture two air-cooled radial engines. This ensured that BMW had access to key know-how in an area of aircraft engine construction with a great future. The expertise acquired through production under license allowed BMW to develop air-cooled radial engines under its own steam during the 1930s. Construction of the BMW aircraft engine factory in Allach (1935), expansion of the manufacturing facilities in Eisenach (1937) and acquisition of the Brandenburg Motor Works (Bramo) in Berlin-Spandau enabled BMW to expand capacities for aircraft engine manufacture under Popp’s leadership. Following the acquisition of Bramo in 1939, BMW enjoyed a monopoly for the production of air-cooled aircraft engines in Germany. This made BMW a key strategic company for the German aviation industry as the Third Reich rearmed. However, Popp was skeptical of the rapid expansion and redirection of the company for purposes of arming Germany in preparation for war.
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