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BMW Accelerates Innovation with Full Acquisition of DesignworksUSA

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BMW Accelerates Innovation with Full Acquisition of DesignworksUSA

SHERIDAN, WYOMING – April 8, 2025 - BMW’s commitment to creativity, innovation, and American automotive culture took a bold leap forward with the acquisition of California-based design studio DesignworksUSA. What began as a collaboration rooted in innovation has evolved into a strategic cornerstone of BMW’s global design presence.

California Creativity Fuels a Global Vision
BMW’s journey with DesignworksUSA began in 1990 when the German automaker was seeking fresh design leadership after the departure of Claus Luthe. The brand turned to California—a hub of car culture and creative expression—and discovered DesignworksUSA, a studio founded by Chuck Pelly in 1972. Initially operating out of a garage in Malibu, the firm had grown into a respected design powerhouse with clients like Nokia and Compaq.

BMW’s interest was sparked by a revolutionary seat design created by Pelly that integrated safety belts directly into the seat backs. This innovation, first seen in a 1985 Volvo and later in BMW’s 8 Series in 1990, signaled the beginning of a fruitful partnership.

“Positive Experiences” Lead to Investment
On August 8, 1990, BMW publicly announced its 50 percent stake in DesignworksUSA, citing the successful collaboration and its potential to bring BMW closer to the American market. “BMW's involvement in this creative venture means that the wishes of American customers, the conditions and developments of the American market are taken more into account,” the company stated.

Tom McGurn, then BMW NA’s General Manager for Corporate Communications, emphasized its importance: “It was a statement that we were in tune with the American market, that we now had a design affiliate in Southern California.”

From Concept to Production, California Delivers
The studio’s first full collaboration came to life at the 1992 Los Angeles Auto Show with the electric E2 concept—an embodiment of California cool and eco-forward thinking. As Chris Bangle took over BMW Design in Munich, he encouraged BMW to acquire the remaining 50 percent of DesignworksUSA, a move completed in 1995. The studio was renamed BMW DesignworksUSA with Pelly remaining as president and CEO.

The acquisition created a gateway to fresh talent from Pasadena’s Art Center College of Design and allowed BMW to explore new ideas in an environment ripe for experimentation. One such idea was Fernando Pardo’s GINA concept, which would influence future designs like the Z4 and the Concept Coupé Mille Miglia.

Impacting the Mainstream—One Design at a Time
BMW DesignworksUSA quickly became integral to BMW’s mainstream vehicle design process. Notably, the E46 3 Series, launched in 1998, was designed by Erik Goplen. This was followed by the pioneering X5 in 1999—BMW’s first Sport Activity Vehicle—designed by Chris Chapman with contributions from Ivan Lampkin and Frank Stephenson.

Meanwhile, DesignworksUSA was involved in top-secret projects such as “Deep Blue,” an initiative aimed at identifying the next big trend in U.S. automotive culture. The result? Future-forward models like the X3, the first-generation 1 Series, and the iconic Concept X6.

Leadership and Legacy
After Pelly stepped down in 2000, leadership transitioned through design luminaries including Henrik Fisker and Adrian van Hooydonk—who would later become head of BMW Group Design. Under their guidance, the studio explored new territory for both BMW and MINI, contributing concepts that shaped the brands' design direction for decades.

Today, Designworks continues to evolve under Julia de Bono, with studios in Munich and Shanghai complementing its Santa Monica headquarters. It has rebranded simply as Designworks and now completes over 300 projects annually, half of which come from outside clients across industries like aviation, electronics, and marine design.

Looking Ahead: The Architects of the Future
Designworks is more than just a design studio—it’s a strategic think tank powering BMW’s future. From developing the groundbreaking electric i3 and hybrid i8 to shaping the all-electric Neue Klasse launching in 2025, its influence is undeniable. The studio’s role is clear: to innovate beyond today’s trends and redefine the future of mobility.

“Designworks is able to do this because it constantly has its ‘eyes and ears’ on the pulse of the times at three locations,” said Adrian van Hooydonk. “[It] gives us the creative energy we need to be really competitive.”

BMW’s acquisition of DesignworksUSA wasn’t just a business decision—it was a creative catalyst. It positioned the brand at the intersection of design innovation and cultural relevance, with a firm grip on the road ahead.

Discover how BMW is shaping the future of mobility at bmwgroupdesignworks.com.