The BMW 507 was conceived by US automobile importer Max Hoffman who, in 1954, persuaded the BMW management to produce a roadster version of the BMW 501 and BMW 502 saloons to fill the gap between the expensive Mercedes-Benz 300SL and the cheap and underpowered Triumph and MG sports cars.
BMW engineer Fritz Fiedler was assigned to design the rolling chassis, using existing components wherever possible. Early body designs by Ernst Loof were rejected by Hoffman, who found them to be unappealing. In November 1954, at Hoffman's insistence, BMW contracted designer Albrecht von Goertz to design the BMW 503 and the 507.
34 Series I 507s were built in 1956 and early 1957. These cars had welded aluminium fuel tanks of 110 litres capacity behind the rear seats. These large tanks limited both boot space and passenger space, and gave off the smell of fuel inside the car when the hood was erected or the hardtop was in place.
Series II and later 507s had fuel tanks of 66 litres capacity under the boot, shaped around a space for the spare tyre to fit.