BMW derived its name from its three native German Companies- Rapp Motorenwerke, Bayerische Flugzeugwerke and Automobilwerk Eisenach.
BMW stands for Bayerische Motoren Werke but this German name is grammatically incorrect because motorenwerke is a single word in German. When translated in English its is called Bavarian motor works which is used by the company for marketing purpose.

The company was founded in 1916 by Karl Friedrich Rapp and has its headquarters in Munich, Bavaria.