As successful as those cars were, they did not separate BMW from the other makers of the time. The cars were still a little too similar to other offerings. That changed with the 1600-2.

Called the 1600 in America and the 1600-2 in Europe, the new car took the four cylinder engine from the new class sedans and put it in a smaller, lighter and better handling two door sedan. Though it would soon be eclipsed by the 2002, the 1600-2 created an entire class of car. Until this time no one had built a car that would seat four people, start all the time, accelerate, turn and stop quickly. BMW did it for about $2,000, and it made the company's fortunes for at least the next thirty years.