- Bayerische Flugzeugwerke (BFW), a maker of airplane motors, is founded on March 7. Bayerische Motoren Werke (BMW) acquires the BFW plant in 1922, transferring its engine construction operations -- including the company and brand names -- to BFW. BMW dates its founding from the founding of BFW.
- BMW's logo is created, incorporating the state colors of Bavaria.
- The company's modern name comes into existence on July 21, as Rapp-Motorenwerke is renamed Bayerische Motoren Werke GmbH. The company grows quickly, building aircraft engines during World War I.
- BMW announces plans for its first motorcycle, the R 32. Until then, the company had supplied engines rather than complete vehicles. The layout of the original Motorrad model -- a boxer engine with longitudinally positioned cylinders and shaft drive -- continues in BMW motorcycles today.