When BMW was established in 1916, it was producing automobiles.

The statement is false because BMW (Bayerische Motoren Werke) was not producing automobiles when it was established in 1916. Initially, the company focused on aircraft engine production during World War I. It wasn't until 1928, after the war, that BMW entered the automobile manufacturing market. Therefore, the assertion that BMW was producing automobiles when it was established in 1916 is incorrect.