THE BMW 540i has been the subject of universal praise, the pedantic experts on the specialist "auto" magazines, united in their admiration for this and other BMW models. While my own verdict is no less original, what I found even more fascinating are the historic events that led to the creation of the modern BMW.

Like Volkswagen, it looked a bad bet shortly after the Second World War. The Soviets, who had to settle scores with German industry for its more than enthusiastic support of the Nazi regime, shortsightedly vandalised BMW, which had gone to extreme but unsuccessful lengths to bury their secrets.

Soviet industry was in poor shape, badly battered by the war, and it could have done with some German expertise and technology. But it was a reverse case of scorched earth strategies.

However, the Russians did make some BMWs in their own country, but this burlesque convinced nobody.

After the war, BMW was reduced to making biycyles, saucepans and farming implements. The company even repaired American trucks to supplement its income. It was a soup kitchen existence for workers and their bosses. Never, even under a socialist regime, were workers and bosses so equal! The Allies also appropriated BMW technology, and the British who rarely stole from their fellow Europeans, confining their depredations to India, China and Africa, produced the award winning Bristol 400 road racer with the help of a stolen BMW design.

It was not until 1952, believe it or not, that BMW produced its first car since before World War Two. This and later models were no match for Mercedes-Benz, their arch rivals. BMW rather prematurely attempted entry into the glamour market in the 1950s but they got their fingers badly burned. They lost a tidy sum, and were forced into the demeaning activity of making bubble cars for the hustling Italians!

But it took a blind man to foresee the future with unerring accuracy. His name was Herman Quandt, and he did for BMW what Henry Ford and some of his successors did for Ford, though on a more modest but, proprtionately, more profitable scale. He became a major shareholder. He was a powerful captain of capital, but realstic and humble enough to persuade BMW workers to go along with his vision. They did, and there was a near-miraculous turn around in the waning fortunes of BMW. Quandt did not suffer fools gladly, and unlike the British, he had no time for juvenile public school loyalties. He got rid of the dead wood and built up a classless meritocracy. He also got old hands in the design department to produce a new model.

After the launch of the BMW 1500 saloon at the 1961 Frankfurt Motor Show, BMW never looked back. They identified and exploited the market for "sexy, upmarket cars" first intended for the children of the West German Economic Miracle, but enthusiastically accepted by most of the world. Cultural values may have been different but the rich, especially the nouveau riche everywhere, were and still are smitten by the products of the former makers of saucepans and bubble cars.

GMs' chief, John F. Smith, Jr., has soberly unveiled the motoring scenario of the future. Asia, with 30% of the world's market, which translates into 20 million vehicles by 2005, will leave Europe and America behind. It is ironic that BMW, which took over Rover a few years ago, actually envied this prize British marque in its hey-day, and sought to emulate it! Despite its Bavarian origins, the Bavarians behave as if they were a separate and independent nation, and can be quite jingoistic, BMW, like GM, will not resent the way in which the pendulum is swinging towards Asia. Co-operation with the Asian giants will give it larger opportunities than it enjoys presently.

As for the 540i, it's not difficult to understand the almost universal enthusiasm for this sprightly, well designed, and self-assured car. It scores impressively on the major points: stability, passive and active safety, handling and reliability. As you would expect from a car of its class and its ferocious power, fuel consumption is far from parsimonious, but then the people who own, or are likely to own a 540i won't jib at such petty details! At the time of going to press the BMW 540i was priced at £36,450.00.