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The company will supply around 4,000 vehicles to transport the 'Games family' during the Olympic and Paralympic Games - including athletes, technical officials, the media and International Sports Federations.
BMW is also a 'Sustainability Partner' and has committed to provide a low emissions fleet. It will showcase electric vehicles and also provide bicycles to help athletes and LOCOG staff get around at Games time. The measures will help deliver LOCOG's objectives of a 'low carbon and 'healthy living Games.
LOCOG Chair Sebastian Coe said: 'Operationally, an automotive deal is vital for any Organising Committee and so I’m thrilled BMW is on board. They share our vision to stage a sustainable Games in 2012 and will be a valued partner.
'On a commercial level, signing another Tier One Partner in this challenging environment is a fantastic achievement but it goes to show the inspirational power of the Olympic Games and Paralympic Games.'