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The blue and white parts symbolize the sky, seen through moving propeller blades.
BMW logo.
BMW (Germany) 1916 to date.
Karl Friedrich Rapp, an engineer, founded an engine company named Rapp Motoren Werke on October 28th, 1913. The first plant was in Schleissheimer Strasse 288 in Milbertshofen, Munich. Rapp worked as a subcontractor to aircraft concern Gustav Otto Flugmaschinefabrick (later called Bayerische FlugZeugwerke).
During the World War I, the two companies were negotiated by Austrian Franz Josef Popp to supply V12 aircraft engines to the Hapsburg empire. On 7 Mar 1916, Bayerische Motoren Werke GmbH was formed with the additional finance from Camillo Castiglioni. BMW AG came on 13 Aug 1918.
The History of this brand starts in 1916, when a Munich (the capital of Bavaria) factory began making aircraft engines. Afterwards it switched to the manufacture of truck and motorcycle engines. From 1923 the company organized the production of motorcycles and after 1928, automobiles. But its main specialty motors was reflected in the name: Bayerische Motoren Werke (BMW).
The abbreviation BMW stands for "Bayerische Motoren Werke" the Bayerische motor factory. The company was founded in 1916 in Munich and at first exclusively produced aircraft engines.
The image has its origins in World War I, when the Bavarian Luftwaffe flew planes painted in Bayern blue and white, affording the pilot a view through his propellor of blue and white segments. This inspired the stylized design.
The first engine to bear the BMW name was the Type IIIa water-cooled six-cylinder aircraft engine. This was short lived as the WWI ended with the Versailles Treaty forbidding Germany from building military aircrafts.
In 1923 the company released its first motorcycle, but it started making cars in 1932.
The 1929 Dixi became the first vehicle to carry the famous BMW logo.

BMW formed March 3 1916 making motorbikes. They used the image above in 1916 of a propeller to signify engineering excellence, and the fact that they made airplane engines as well.

BMW logo.

1930s BMW logo.
BMW logo in black and white.
BMW logo with "The Ultimate Driving Machine" tagline.
The John Cooper Works brand was sold to BMW in January 0f 2007. Mike Cooper, son of John Cooper the Formula One engineer, joined with BMW six years ago to help relaunch the MINI with his own John Cooper Works brand, which provided high performance options for MINI fans. Mike Cooper will continue to provide kits for first generation BMW MINIs.
The BMW Brand - Emotions.
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the blue and white segments actually have their origins in the coat of arms of Bavaria - this is confirmed on a TV programme about the Z4 factory in USA - can't remember the name of the prog, but someone from the BMW head Office did admit that they have only just discovered this...