Its owner Harald Friedrich was looking for other product possibilities.

Because of the poor suspension design, Friedrich employed the 77 year-old Tatra-constructor, Dr. Hans Ledwinka, who designed a car with a fixed central backbone tube and the front wheels hung on a separate subframe. The new 4-wheel layout acquired strut suspension and hydraulic brakes. The Fichtel & Sachs (Messerschmitt) motor was retained. The twin rear wheels were on swing axles, and the Plexiglas windshield was replaced by a split glass one.

Friedrich introduced the new Spatz at the IAA in 1955 in Frankfurt. Production began in Traunreuth, with the motorcycle firm Victoria Werke in Nurnberg handling sales and service. In 1956 the Bayerische Autowerke GmbH (BAG) was formed. The engine was the familiar 191cc Sachs (Messerschmitt).

The press was critical of the high price and the less-than-sparkling performance. An acrimonious lawsuit from Brutsch, claiming corruption of "his" design, and fire problems encouraged Friedrich to hand the rights over to Victoria at the end of 1956. 859 vehicles were built until May 1957.

Manufacturer: Bayerische Autowerke GmbH, Traunreut Germany