Although BMW had been racing its cars since the 1920s, it didn't develop its first true-blue sports car until the late 1970s. A few years after the M division started making headlines with its beefed-up sedans and coupes, BMW signed an agreement with Italian manufacturer Lamborghini to build a mid-engine sports car in sufficient quantity for racing homologation. The collaboration didn't go as planned, and BMW eventually decided to produce the car itself with input from its Motorsport division. The M1's body was designed by Giugiaro, which explains its very Italian cues, while production was handled by Baur. The end result was sold to the public from 1978 to 1981, with only 453 examples built.

To this day, the M1 remains one of BMW's rarest models. Likewise, it is also one of the company's most successful race cars, with its track career surpassing that of the road car's well into the 1980s. Unfortunately, the M1 is also BMW's first sports car, which makes it that much more important to the Munich's storied history as an automobile manufacturer.

The M1 Homage Concept launched in 2008 to commemorate the 30th anniversary of the M1 spawned rumors that BMW might build a successor, but a modern-day M1 has yet to arrive as of 2014.

Updated 08/23/2016: RM Sotheby's auctioned a very well preserved Ferrari Enzo during the 2016 Monterey Car Week. Check out the "Prices" section to see how how much it was auctioned and the "Pictures" tab for some images taken during the event.

Continue reading to learn more about the 1978-1981 BMW M1.

Back in the late 70's BMW was having a hard time in group four touring car racing. The 3.0CSL was getting old and a replacement was needed to show the Porshce 935 who was boss. It was thus decided to build the M1 using styling queues from the 1972 Turbo concept car. The M1 was always a heavy car and was sadly never very competitive, its looks go a long way to making up for this as a road car though.

 The BMW M1 is a supercar automobile, and was the first and only mid-engined BMW.

This rarest of modern BMWs was manufactured from 1978-81.

The Giugiaro-designed M1 was to be assembled by Lamborghini, but Lamborghini's poor financial situation and assembly delays caused BMW to move assembly to Baur, the German convertible builders.    

   By the time production resumed, the homologation rules for international Group 5 racing had been changed. Since BMW had not met the required sales figures, the M1 went to the new Procar series instead.

   By the time BMW had sold enough cars, the M1 was no longer competitive for Group 5 racing. In 1981, David Coward and Kenper Miller won the IMSA GTO category.

Only one road going version of the M1 was produced. Several racing versions exist with power outputs of up to 850bhp.All of the 456 M1's built were left hand drive except two. One RHD model recently turned up at Munich Legends with only 8000 miles.

 With a 24-valve cylinder head, the engine had 277 hp at 6500 rpm  and develops 239 ft/lb of torque at 5000 rpm.  Several racing versions exist with power outputs of up to 850hp.

 The M1 was all Italian in look and feel, but had a big BMW engine wailing from the back. As one writer puts it, "the sensation of having that twin-cam six just behind your head is hard to describe-it's like extra bass, but without the 12-inch woofers." Only a handful of road versions of the M1 exist.

Though the car never saw a great deal of racing success, the M1 is remembered as a refined and civilized supercar in the true BMW tradition, with great handling and stellar build quality. In 2004, Sports Car International named the car number ten on the list of Top Sports Cars of the 1970s.

 M1 Road Car

Cylinders:     6 in-line, mid mounted

Capacity:     3453cc

Power:     277hp @ 6500rpm

Torque:     243lb @ 5000rpm

Weight:     3175lb

Max Speed:     162mph

Acceleration:     0-100kmh(62mph) in 5.6sec

Fuel Consuption:     14.4mpg

Front Wheels/Tires:     Alloy 7x16 205/55 VR16

Rear Wheels/Tires:     Alloy 8x16 225/50 VR 16

Engine Mangement System:     Kugelfischer-Bosh Mechanical injection