The BMW M1 was designed to be Motorsport GmbH's first racing car that wasn't based on an existing production model. In order to make it, BMW created the technical components, while Lamborghini was supposed to manufacture the body and chassis, however, Lamborghini had financial issues that caused delays. As a result, other sources had to be used; Giugiaro's company ItalDesign provided the interiors fittings, Marchesi supplied the spaceframe, and T.I.R. crafted the glass-fibre reinforced plastic bodyshell, which were then sent to Stuttgart where Baur installed all the mechanical assemblies.
In order to be homologated into FIA Group 4, at least 400 units had to be produced, resulting in the BMW M1 becoming a road-going model in 1978; its 277 hp engine allowed it to reach a top speed of 264.7 km/h (164.1 mph) and sell for DM 100,000. Demand reached far beyond supply and there were believed to be 300 more orders than the 130 cars produced.
The ProCar racing version of the M1 was made with 470 hp and a top speed over 300 km/h (190 mph). In 1979, Niki Lauda, the two-time Formula 1 World Champion, drove one of the cars, clinching three out of eight races and taking a well-deserved second place in another. The M1 was also very successful in the US, competing in the IMSA GTO Class.
Inspired by the success of the M1, Motorsport GmbH decided to create the M535i in 1980. It was based on the 5-Series model, and had a two-valve 6-cylinder engine that provided 218 hp, becoming king of the fast lane.
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