The M1 coupe was hand-built between 1978 and 1981 under the motorsport division of BMW as a homologation special for sports car racing. The body was designed by Giugiaro, taking inspiration from the 1972 BMW Turbo show car.

 Originally, BMW commissioned Lamborghini to work out the details of the car's chassis, assemble prototypes and manufacture the vehicles, but Lamborghini's financial position meant that BMW reassumed control over the project in April 1978, after seven prototypes were built. Since the engineering of the car was still incomplete, a group of former Lamborghini engineers that had founded a company named Italengineering offered to complete the car's design. Less than 10 miles away from the Lamborghini shop, the engineering for the M1 was finished.

 Only 453 production M1s were built, making it one of BMW's rarest models