On 20 May 1913, a branch was set up for aero-engine production at Schleissheimer Straße 288 (near the first airport on the Oberwiesenfeld) in Munich-Milbertshofen, and Karl Rapp and Joseph Wirth were given power of attorney in Munich.

Rapp, working as an engineer and operations manager for the company, engaged in the construction of several biplanes and a monoplane.

However, the company was dissolved by a resolution of the shareholders on 16 April 1913, and Joseph Wirth was appointed as sole liquidator.

On behalf of the Austrian War Ministry, Franz Josef Popp supervised the handling of the order in Munich.

The decision by the Prussian Army Administration to order 600 units of the innovative high-altitude aero-engine (project name "BBE"), originated by the designer Max Friz, entails reorganizing the legal structure of the company.

The unsuccessful managing director and shareholder Karl Rapp resigned from the company around that time, most likely due to ill health.

After Rapp left the company (immediately it was renamed BMW) he became chief engineer and head of the Aeroengine Department of the L.A. Riedlinger Machine Factory where he was probably employed until October 1923.