Wolfgang Denzel, the distributor of BMW cars in Austria, commissioned Giovanni Michelotti to prepare concept sketches based on a lengthened BMW 600 chassis. In January 1958, Denzel was awarded a development contract for the 700. Denzel presented a prototype to BMW's management in July 1958. The concept, a two-door coupé with a slanted roof, was generally well received, but objections were raised about the limited passenger space. BMW decided to produce two versions, the coupe, and a two-door sedan with a taller, longer roof.