Borgward is an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in this 1960s. The Borgward group made four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has considering that been revived by Carl Borgward's grand son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the business's first new car with over 40 years, the BX7 at the particular 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business go back to 1905 with the establishment in nearby Varel in the "Hansa Automobilgesellschaft" and the walls in Bremen itself associated with "Namag", maker of the Lloyd vehicle. These two businesses merged in 1914 to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economic situation then confronting Germany, the business failed to prosper and because of the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the possibility greatly to expand the scope of his car business, and he took control of it.
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The primary "automobile" Carl Borgward designed was the 1924 Blitzkarren (lightning cart), a sort of small three-wheeled van with two hp (1. 5 kW), which was an enormous success out there gap it filled. Traders with a small budget bought for delivery. The Reichspost ordered most of them for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the nonetheless three wheeler timber framed synthetic leather bodied 5 as well as 7 hp Goliath Master. Borgward turned his awareness of the other businesses along with led the development from the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 along with in 1939 the label was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used a few of the brand names from corporations he had acquired in the past to found three distinct companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business each time of austerity and rationing. For many purposes the lenders would be run being a single entity, but in a business operated by the man to whom delegation wouldn't come naturally the expansion of legal entities nevertheless added unhelpful layers of complexity through the 1950s and encouraged a broadening from the range which eventually proved financially unsustainable using the sales volumes achievable. In 1949 company introduced the Borgward Hansa 1500.Among the top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most popular model and remained in production to the life of the corporation. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a distinct 1500 cc sports racers within the late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (which was also used by a number of F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such while air suspension and automated transmission, the company had trouble competing in the market. While larger companies like Opel and VW took good thing about economies of scale along with kept their prices low to get market share, Borgward's cost structure was even higher than necessary for its dimensions, as it basically managed as four tiny independent companies and never implemented such basic price reduction strategies as joint development and parts sharing between your company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced as being a water-cooled boxer with front wheel drive, but plagued with problems for example water leakage and gearbox mistakes. Lloyd lost money on the car community . was more expensive in comparison with its direct competitors.In 1961, the company was pushed into liquidation by creditors. Carl Borgward died throughout July 1963, still insisting the company have been technically solvent. This proved to be true in the sense that after your creditors were paid 100 %, there was still 4. 5 million Marks remaining from the business.
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Accounts of difficulties at Borgward surfaced within an article that appeared in Germany's leading news newspaper, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted with a picture of Borgward, cigar in mouth, on the magazine’s entrance cover. It was strongly crucial of Carl Borgward's company approach, and included many with the arguments later advanced to spell out or justify the firm's demise. The widest range regarding cars from any supplier in Germany, produced by three until eventually recently operationally autonomous organizations (Borgward, Goliath and Lloyd) had been supporting a turnover regarding only 650 million Represents, placing the overall sales value from the combined Borgward auto firms only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation regarding new and modified products featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") presented rise to components which too much did not work, broke down or droped apart, resulting in massive expenses for pre-delivery remediation and/or write-up delivery warranty work that found their in the past to the company.The December 1960 Spiegel article wasn't the only serious public criticism targeting Borgward at this time: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild magazine and in television accounts. Critical media commentaries furthermore appeared concerning large loans on the Borgward Group provided by the local Landesbank.It is apparent how the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses such as auto manufacturing use his or her expensive machines and tools most efficiently if they use them constantly with full capacity, but the car market in Europe from the 1950s/60s was more seasons than today, with sales diminishing within Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars by the end of 1960 was more than usual, reflecting ambitious growth programs, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered with the North American dealers with 1960 (and on the 12, 000 delivered to these) 6, 000 might have for being taken back following a slump in American demand. (Borgward was not the only real European auto maker hit by a North American slump in demand for imported cars through 1960. In the same season two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
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At the conclusion of December 1960 Borgward approached your banker for a further 1 million Marks of credit rating, the loan to be backed by a guarantee from the Bremen local government which initially the Bremen senators opted for provide. However, following the flood of critical press comment the actual senators withdrew their assurance. They now required Carl Borgward to pledge the corporation itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported in a very still hostile media, Borgward agreed to the actual senate’s terms on several February 1961, thereby averting the bankruptcy in the business.The Bremen Senate furthermore insisted on appointing its very own nominee as chairman from the company’s supervisory board. The man they chose was Johannes Semler who reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice to the breadth of Semler’s job. He had studied legislations at university and worked initially being a lawyer. The scion of a top Hamburg political family, in 1945 he got himself been a founding person in the centre-right CSU get together, and was a member of the Bundestag between 1950 in addition to 1953. Despite his Hamburg sources, Semler was by this time based in Munich, with a network of contacts inside Bavarian establishment that likely included fellow CSU politician along with the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a very top administrative position inside Bizone. The appointment of Johannes Semler as the representative of the Bremen senators in order to chair the Borgward supervisory mother board would, in retrospect, contribute to the controversy that followed the Borgward bankruptcy.
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Upon 28 July 1961 Semler, as Chairman of your supervisory board joined the directors on the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling the business to continue to trade while while doing so protecting the interests of creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of his or her own, never had any intent of allowing the Borgward auto-businesses in order to survive.
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