Risky business. That defines the car business, and never more succinctly so than in the case of this car. Rarely has a desperate last-minute gamble paid of so handsomely as the “Neue Klasse” BMW. The recent attempts to resuscitate Saab only brings that point home. Only in their wildest dreams (or hallucinations) could they have imagined turning their business around so quickly and definitively as this bold gamble of a car did for BMW. But having the guts and money to back the risk taking is only part of the equation. Most of all, it’s a matter of being at the right time with the right product, and having the smarts to recognize it. In 1962, the seemingly impossible wasn’t. Today? Good luck.
In 1959, BMW was about to be liquidated. It was then an unprofitable small maker of a very expensive large V8 sedan (502) and sports car (507), a tiny bubble-car (Isetta), and motorcycles. BMW was the very model of branding muddle, and it was crashing fast. Herbert Quandt’s family owned a 30% stake in BMW, and he was ready to throw in the towel too.
But something got him to change his mind at the last minute. It may have been the pleading objections of the workforce. More likely, it was seeing the early drawings for this very car; well, strictly speaking, the smaller engined but otherwise identical 1500 model. So against the recommendation of his bankers and advisers, he increased his stake to 50%, thus financing the new mid-sized sedan to production. That bold gamble made his family one of the richest in the world. And this car created the whole modern BMW legacy, the proto-Bimmer. It’s the first, if not the ultimate driving machine.
That’s not to say that the BMW 1500/1800 was all that radically new in concept. It borrowed heavily from two other sedans that had identified a substantial niche for a family-sized sedan with sporting ambitions. Alfa Romeo had been at it since the mid-fifties with their popular Giulietta. But that wasn’t exactly mainstream family fare in Germany back then. But the Borgward Isabella (above) most certainly was.
Appearing in 1954, the Isabella was a very modern and highly regarded sedan with a lively OHC 1500 cc engine, and slotted in just below Mercedes’ solid but stolid 180. When the higher output (75 hp) TS model appeared in 1955, the formula for the future BMW 1500 crystallized: OHC four, independent suspension all-round, and a harmonious balance of performance, handling, room and affordability.
Unfortunately, the Isabella had early teething problems, and the unforgiving Germans punished Borgward. In 1961, Carl Borgward’s whole empire (including Lloyd) was forced into a highly controversial bankruptcy, because it turns out the firm may not really have been truly insolvent. There have even been rumors that the Quandts might have played a role in that.
Coincidentally, or not, the first BMW 1500 rolled off the lines in 1962, about the same time the last Isabellas were rolling off theirs. Borgward enjoyed a reincarnation in Latin America of sorts, but the new BMW was happily embraced back home. It hit the sweet spot, and just at the right time. Germany’s Wirtschftswunder was in high gear, and a growing number of VW owners were ready, willing and able to move up a step or two. The BMW 1500 was there to accommodate both their driving ambitions and family hauling requirements, given that the two-car family was still a distant concept.
The 1500 featured a family-friendly tall and boxy body, with plenty of room for Oma and the kids in back, and their luggage in the trunk. And of course, it featured the first use (on a BMW sedan) of that famous Hofmeister kink in the C-pillar that actually predates any BMW, having been seen at least as far back as the Kaiser. Neue Klasse styling certainly wasn’t particularly original, being another of so many copies of 1960 Corvair themes, except for that roof line and a few other details.
Suspension was by MacPherson struts in front, and semi-trailing arms in back, a formula BMW used as late as the nineties. And the over-square short-stroke SOHC hemi-head four was designed to accommodate future increases in size and power, although I doubt the engineers envisioned it putting out some 1500 horsepower in its turbocharged F1 evolution. Yes, that engine did use a block based on the production M10 engine, and won the 1983 GP championship.
The 1500 wasn’t exactly brimming with power, with all of 80 hp. Zero to sixty took some 15 seconds. But that was reasonably brisk compared to many cars of the times. And the engine was a masterpiece from the get-go, and revved happily to 6,000 rpm. But within a year, in 1963, the 1800 came along with bigger bore and a longer stroke to generate 90 hp. Its improved torque and all-round performance balance hit the right note, and quickly made the 1800 the most popular of the Neue Generation BMWs. A 1600 variant took over the weak-chested 1500 in ’64, and a more luxurious 2000 followed in 1966.
But the real fun started in 1964 with the 1800TI (touring international). Using a twin-carb setup and hotter cam developed by Alpina, it spun out 110 hp (124 SAE gross). And a racing-oriented 1800TI/SA with Weber side-drafts upped that to 130hp or more. The ad here says that 170 (SAE gross) was available with optional equipment. That’s highly impressive for the times. The whole sporting future of BMWs to come started with this 1800. And what a future that turned out to be.
I have noisy and vivid memories of these cars, riding in them and watching them race when I spent a long summer in Austria in 1969. The Bergrennen (mountain climbs) sent the 1800TI/SAs and their arch-rival Alfas tearing within reach of an outstretched hand through the tiny Alpine villages. No barriers of any kind; I can still feel my hair get blown by their draft, and the sound and smell of their hard-charging fours.
These Bimmers were ruggedly handsome, but not exactly graceful in the Italian idiom (which was largely defining beautiful cars at the time): mighty Germanic and a bit klunky. No wonder BMW had Michelotti style the smaller 1602/2002 a few years later. But they suited the needs of their time perfectly, offering maximum interior space for the least amount of weight and real estate. And they soldiered along until 1972, when their iconic successor, the 5 Series appeared. But the M10 engine stayed in production until 1987. The 2000 (above) was more commonly seen in the US. The US version had four headlights, and the Euro version large flush rectangular ones.
By 1963, the year the 1800 went into production, BMW was already well turned around, and paid its first dividend. And it’s never stopped. But anyone back then daring to imagine BMW someday outselling Mercedes would have been accused of having a psychotic event. Hallucinations, at the minimum.

















Although I have known very little about them, I have always found these old BMWs very appealing. I love the “German-ness” of these cars, and can only imagine the solid feel of the door handle and the other controls. And I find them very attractive, although I have a thing for the utilitarian.
I have also never been well versed in BMWs early history, so this piece fills in some holes. An informative and enjoyable way to start the new year.
My mom’s 1800 wasn’t very appealing… maybe because of the Earl Scheib paint job… and my grandmother’s 2002 seemed quicker, lighter and was a lot more fun to drive… In contrast, the 1800 seemed ponderous… although we did get it up to 95mph on the Pacific Coast Highway! As for the BMW 1800 being the car that “saved” BMW: I always thought that honor belonged to the diminutive two cylinder BMW 700 micro car!
I had a ’73 2002 with a Weber carb on it. What a fun car that was to drive. Until someone hit me from behind on the Skyway Bridge in Hamilton ON. The insurance company wrote the car off. That was the end of my BMW experience. Great memories though!
In 1966, at the sub base in New London, we had a Captain attached to the squadron that drove one of these. He commuted to Rhode Island every day. We all thought his little puddle jumper was pretty cool but nothing like a GTO or other really hot car. We wouldn’t have shared the psychotic event mentioned above but the consensus was that the Captain and his little car had a pretty good thing going on.
At the time, I was more swayed by the economy and utility of my 66 beetle. Guess that’s a farm boy for you. Little did we know!!!
You know how some cars look better without their bumpers?
This isn’t one of them.
I have fond memories of these cars. My parents bought a 1970 2000 in late 72 and it was the catalyst for my car enthusiasm. My reading ability had progressed to the point where I could understand Road & Track and Car & Driver, and we would actually go to races. Our local dealer (Foreign Car Clinic in Dobbs Ferry NY) raced a 1600 and a 2002 so we would go up to Lime Rock for the Memorial Day weekend IMSA races and also went to the first couple of Car & Driver Showroom Stock Challenge races in the fall. Ours was Navy Blue with a Black interior and coincidentally a teacher at my elementary school had a 2000 Automatic in the same colors (odd how slushboxes used to be exceptional). We kept it until 1977 when failing synchromesh, rusty fenders, and mom’s complaints about a heavy clutch led to it being replaced by a new Honda Accord, but give mom credit, the Accord was a 5 speed.
These cars and the two door 02 series cars are what I think of as true BMWs, serious driver’s cars that were affordable, not the latter yuppiemobile.
I remember Foreign Car Clinic in Dobbs Ferry, NY. They were the first to sell BMWs in Westchester County I believe. I recall seeing a fair number of BMW 2002s in my area for a number of years and that was before the BMW was a “yuppiemobile”. The earlier BMWs had a character to them that the present ones lack.
I remember seeing a 1966 or ’67 on a small used car lot in Port Orchard in about 1970 or ’71 – the guy was complaining he’d gotten taken by the seller, didn’t realize the car was as old as it was. I probably didn’t get any points with him by pointing out that its license plates were obviously issued in ’67 or before – the big switch in Washington to reflective plates had happened in 1968. The car was mildly interesting to me, but I’d just gotten my 1967 383 Barracuda and wasn’t doing any real car-shopping.
I’m still trying to get it thru my THICK head, that WE GET NO POINTS for being smarter than the guy shooting his mouth off about something he doesn’t know as well as he thinks he/she does.
Do We get points for letting them know we think they are trying to BS- us?
It doesn’t pay to Correct, and Rarely does looking smarter help us.
You’d think I’d know this by now. I should.
Even, or should I say AT HOME this holds true, yet I can’t Stop myself it seems. ARGH… New Years Resolution – worthy?
Too bad the US-market 2000 didn’t get the flush rectangular lights, they really looked nice on it. These clean, no nonsense BMWs are much more appealing to me than most of the current ‘flame surfaced’ BMWs, although the recent 5 and 7 Series is thankfully moving away from that style.
Back in the 60′s , when I was a teenager, this was my absolute favourite car. The combination of Italian style and German engineering seemed a match made in heaven. The 6 volt electrics were the only feature I doubted.
Gorgeous little sedan.
While the majority of Americans were happily wallowing around in Impalas and Fairlanes in the mid 60′s, a few fortunate owners were enjoying the hell out of these little BMWs.
Even in the car savvy San Francisco Bay Area, Bimmers were really a novelty until the mid 70′s. Even then, there were 2 BMW’s to every 10 Benzes although the 2002s, 320s and 528/530s changed all that.
In high school this one young lady, Sylvia K, her old man was the head mechanic at German Motors (San Francisco). Her personal car was a ’57 Mercedes 220 her Dad fixed up for her. Chocolate with red leather seats and four-on-the-tree.
Love the old Bimmers. San Rafael’s “Auto Zentrum” carried BMW since, I believe, about 1966/67. My Dad had a friend who had a ’71 Bavaria. He came (fingers held together about 1 1/16″ apart) close to buying one as he loved the way that car drove and handled. Issue was headroom. Dad is 6’4″.
Strangely enough he decided the $7000.00 was better spent on an Oldsmobile Custom Cruiser Station wagon, vintage 1971. Just as well. Mom drove it into a pole a month after my Dad bought (the Olds). I think if the Old Man got the Bavaria, he never would’ve let my Mother drive it.
Aside from a couple of dissapointing Hyundais and a Grand Caravan that was totalled by a drunk, my Dad’s pretty much been a Honda man since 1980.
The Compromises your Dad made for his family!
The Olds Custom Cruiser must have had about the worst handling. YOur Mom may not have hit the same pole if her car had handled better.
pERHAPS Room for the kids to slosh around in the rear was not the responsible choice after all.
My first awareness at all of BMW, was several years after I had seen my First Iseatta.
I was maybe 8 in 1967, and I was on a Sleepover at a Friends’ house. His Dad was a Doctor and They Had Moved on Up, and out of our hood, to The Hood Where Connie Francis resided.
They Could have any cars they wanted, so WHY did they choose to own not only a rather fuddy duddy looking Mercedes Benz, Not even a Tailfin on it. But The Doctor was driving something that looked like a Corvair or a Rambler, yet They said it cost More than a Cadillac! What were they thinking? I recognized the snob appeal attitude they seemed to have about this rather plain looking economy car, that cost a fortune!
About 10 years later, my Brother was crazy about his Orange well worn Early round Tailighted version of the same car, a 1500 IIRC. I still didn’t get what was special. Soon that changed.
It was the GQ CAR apparently…
and as a college freshman in Boston, I sure knew that The kid who arrived with a 1978 BMW in greenish mettalic was THE kid 2 b seen with. I can only imagine John John drove one, rather than one of his uncles beloved Oldsmobiles.
Where I have lived , A Black BMW, a silver Mercedes, has been part of THE Right Outfit for most of the last 30 years. A safe choice to be part of the In Crowd.
I guess I’m just not into fitting in, I tend to not want what everyone thinks is cool, if only on principal. I would kind of like a nice BMW. Much more than any Mercedes. It speaks to me in a Way the others don’t.
What a timeless car. It’s hard to believe they made it 50 years ago.
Wow, what a piece! David E. Davis would’ve been proud of this writeup. Over-hyped BMW goodness. Plenty of room in the back indeed, with a 98in wheelbase. A `reasonably brisk’ ultimate driving machine. The engine is a masterpiece because it revs noisily to 6000rpm, generating p**s-poor power in the process, because slow revving engines can not be masterpieces. High RPM is as much a factor of better metalworking and small engine size as it is of engine design. Maybe the German metalworks were better. And this small, uncomfortable, underpowered car is so good we’ll over-price it, because it is *German*, no less. The looks, well, I agree that looks are subjective, but this car is *B*A*D*. The Corvair looks do not translate well to size reduction, which is taken to an extreme in the Sunbeam Alpine Imp. Compared to the Borgward Isabella, this car is really a piece. A Piece of S***, that is. No offence to Germans.
Underpowered compared to what? Sure, you could get a ’64 Mustang V8 for cheaper that would beat this car in a straight line, but I doubt BMW buyers were cross shopping this car with Fords back then.
If anything, the Mercedes 180/220 series would have been this car’s direct competition – and the top line Mercedes 220SE of the early 60′s did 0-60 in 14 seconds, slower than the BMW.
Sam, you partially answered your question yourself. The ’64 1/2′ Mustang is indeed a larger, more comfortable, more powerful, better equipped, *much* better looking car with a wider dealer and service network, and was available at a considerably lower price. It would’ve been a no-brainer to pick up a Mustang instead of a BMW, as the sales figures reveal. I would hate to think that BMW buyers of the time were arrogant rich snobs who would drive around in a trash-can if it was expensive enough and Made in Germany(tm), but the fact that they were only cross-shopping with Mercedes-Benz tends to reinforce the stereotype. I mean, what person has `German Car’ as the primary criterion for selection? Was it the independent suspension?
But that is besides the point. What I felt wrong was the paeans sang about the car in this article. Every weakness is glossed over, every minor strength emphasised. It almost reads like an ad copy for BMW. It was a good enough product for a market it sold well enough in (Germany). But it is not a `great’ car.
P.S.: Surprisingly, BMW, Mercedes-Benz and Audi still carry on this ridiculous business model in the U.S. I suppose snobbery never dies huh? Priced expensive enough, a turkey can’t be made into an eagle, but it sure can fly.