BMW 507

BMW 507

The BMW 507 is widely regarded as one of the most beautiful automobiles ever created, a masterpiece of design that nearly destroyed the company that built it. Designed by German-American industrial designer Albrecht von Goertz, the 507 was intended to compete with the Mercedes-Benz 300 SL in the lucrative American sports car market. Instead, it became a commercial failure that pushed BMW to the brink of bankruptcy -- and subsequently one of the most valuable and collectible classic cars in the world.

The story of the 507 begins in 1954, when Max Hoffman, the legendary New York-based automotive importer, convinced BMW that there was a market for a sports car priced between the expensive 300 SL and the basic Triumph TR3. Hoffman envisioned a car that would sell for about $5,000 and be produced in quantities of 5,000 per year. BMW commissioned Goertz to design it, and the result was a breathtakingly beautiful roadster with flowing lines, a wide kidney grille, and an elegance that surpassed even the 300 SL.

Under the aluminum bodywork lay a tubular steel frame with a 3.2-liter V8 engine derived from BMW's 502 sedan. The engine produced 150 hp in standard form (and up to 165 hp with optional high-compression pistons), driving the rear wheels through a 4-speed manual gearbox. While not a true sports car by the standards of the 300 SL or contemporary Ferraris, the 507 offered spirited performance with a top speed of 124 mph.

The problem was cost. The aluminum body panels were hand-formed by the specialist coachbuilder Baur, and each car required extensive hand-finishing. Instead of the target price of $5,000, the 507 ended up costing $9,000 in the United States -- more than a Corvette and dangerously close to the 300 SL. At this price, demand was far below expectations. Over its four-year production run, only 252 examples were built.

The 507's most famous owner was Elvis Presley, who purchased a white 507 while stationed with the U.S. Army in Germany in 1958. Female fans began covering the car in lipstick kisses, prompting Elvis to have it repainted red. The car was later shipped back to the United States and eventually fell into disrepair before being fully restored by BMW Classic in 2016.

The financial losses from the 507 program contributed to a severe financial crisis at BMW in the late 1950s. The company came within a hair's breadth of being acquired by Daimler-Benz before a dramatic rescue by the Quandt family in 1959 -- an event that ultimately set BMW on the path to becoming the company it is today.

Today, the BMW 507 is among the most valuable classic cars in existence. With only 252 built and many in the hands of long-term collectors, examples rarely appear on the open market. When they do, prices typically range from $2 million to $3 million, with exceptional provenance cars reaching higher. The Elvis Presley car, now owned by BMW and fully restored, is considered priceless.

The 507 is a car that transcends automotive engineering to exist as a pure work of art. Its influence on BMW's design language can be traced through the Z8 (designed as a deliberate homage) and into the current Z4. It stands as proof that commercial failure can coexist with timeless beauty.