The 1990s saw a period of large-scale mergers, company acquisitions and expansion drives in the automotive industry. BMW's first move in the decade was to set up a joint venture with the aeronautical division of Rolls-Royce, returning to its roots in the aviation sector. Expansion into the US market was another priority, and construction work began on a new factory in Spartanburg, South Carolina. And of course, there was Rover; in March 1994, BMW took control of the struggling British car maker, with the idea that it would give them access to the lucrative mainstream and small car markets. Also coming as part of the deal were the Mini, Land Rover and MG brands, and their associated production plants and facilities. The fag-ends of the British Leyland empire needed to be consolidated: massive reorganisation and restructuring took place, and initially, Rover production actually grew. Programmes were started to renew Rover's ageing product line-up, and work started on an all-new small Mini. BMW did another controversial British deal, too: in 1998, it obtained the rights to the Rolls-Royce name and trademark - effective from 2002 - although this was all it got: Volkswagen took over the Bentley sister brand, and the Rolls-Bentley production facility in Crewe.
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| X5: BMW learned much from its stint with Land Rover... |
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Besides the boardroom machinations, a product offensive continued. An all-new third-generation 3-Series (1990-98), eventually available as a saloon, coupe, convertible, Touring estate and Compact hatchback, gave more choice than ever, with engines from a 90bhp four-cylinder diesel to the M3's 321bhp straight-six. Claus Luthe produced a modern design more acclaimed than his work on the 8-Series, and introduced BMW's "face of the nineties." Fourth-generation models (1998-2004) continue the tradition, with an all-new range - expected early 2005, and to be built at an all-new factory in Leipzig - likely to continue to be the benchmark in this class of car. The Mk 3 7-Series (1994-2001) range was augmented by more diesels, refined and smooth, and around 330,000 buyers opted for this top-end saloon; the 5-Series went from strength to strength, with fourth-generation models (1995-2003) highlighted by the 400bhp M5. The Spartanburg plant produced the retrosyled Z3 roadster, BMW's first US-built car and a more mainstream successor to the Z1, and whilst this was never quite a class-leader in terms of driving dynamics or refinement, it won a lot of new customers for the brand, particularly in America. Z3 Coupe and successive M Roadster and M coupe variants were more credible amongst sports car enthusiasts, despite criticisms of the Coupe's "breadvan" rear end. Making the most impact in the States, however, was the company's first SUV; the 4x4 X5. Although not quite as hardcore an off-roader as the Range Rover, BMW learned much from its brief ownership of Land Rover, and the X5 is an immensely accomplished performer on hard tarmac.
