The Bf 162 was designed in response to a 1935 RLM (Reichsluftfahrtministerium - "Reich Aviation Ministry") specification for a schnellbomber ("fast bomber") for tactical use. Messerschmitt's design was a modified Bf 110 with a glazed nose to accommodate a bombardier. In 1937, three prototypes were flown against designs by rival manufacturers, the Junkers Ju 88 and the Henschel Hs 127, both of which were entirely new designs. Eventually, it was the Ju 88 that was selected for production, and development of the Bf 162 ended at that point. As a disinformation tactic, images of the Bf 162 were widely circulated in the German press captioned as the "Messerschmitt Jaguar", a name never used outside this context. This aircraft's number of 162 was later re-used for the Heinkel He 162 jet fighter.