Borgward is an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the actual 1960s. The Borgward group produced four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has due to the fact 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 corporation's first new car within over 40 years, the BX7 at the particular 2015 International Motor Indicate.The origins of Bremen's most significant auto-business get back to 1905 with the institution in nearby Varel in the "Hansa Automobilgesellschaft" and the muse in Bremen itself involving "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 in order to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial situation then confronting Germany, the business failed to prosper and because of the late 1920s faced chapter 7. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand your scope of his auto business, and he took control of computer.
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The primary "automobile" Carl Borgward designed was the 1924 Blitzkarren (super cart), a sort of very small three-wheeled van with only two hp (1. 5 kW), which was an enormous success already in the market 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 home of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the however three wheeler timber presented synthetic leather bodied 5 as well as 7 hp Goliath Pioneer. Borgward turned his focus on the other businesses along with led the development on the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 along with in 1939 the name was shortened to Borgward 2000. The 2000 model was as well as the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from businesses he had acquired over the years to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase the number of steel allocated to his business at any given time of austerity and rationing. For many purposes the companies would be run like a single entity, but in a business operated by way of man to whom delegation wouldn't come naturally the spreading of legal entities on the other hand added unhelpful layers of complexity with the 1950s and encouraged a broadening of the range which in the end proved financially unsustainable with the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of many 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 favored model and remained in production for your life of the company. In 1960 the Borgward P100 was introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers in the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (which was also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such as air suspension and programmed transmission, the company had trouble competing in the market. While larger companies like Opel and VW took good thing about economies of scale and kept their prices low to get market share, Borgward's cost structure was even higher than necessary for its dimension, as it basically managed as four tiny independent companies and do not implemented such basic charge reduction strategies as articulation development and parts sharing between the company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced like a water-cooled boxer with entrance wheel drive, but plagued with problems including water leakage and gearbox errors. Lloyd lost money on the car even though it was more expensive in comparison with its direct competitors.In 1961, the company was forced into liquidation by credit card companies. Carl Borgward died with July 1963, still insisting the company had been technically solvent. This proved to be true within the sense that after your creditors were paid completely, there was still 4. 5 million Marks left from the business.
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Reviews of difficulties at Borgward surfaced within the article that appeared within Germany's leading news magazine, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted through a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly crucial of Carl Borgward's business approach, and included many of the arguments later advanced to explain or justify the firm's demise. The widest range regarding cars from any manufacturer in Germany, produced by three until eventually recently operationally autonomous businesses (Borgward, Goliath and Lloyd) seemed to be supporting a turnover involving only 650 million Scars, placing the overall sales value from the combined Borgward auto companies only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation regarding new and modified designs featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") presented rise to components which too much did not work, broke down or dropped apart, resulting in massive costs for pre-delivery remediation and/or article delivery warranty work that found their sources that are to the company.The December 1960 Spiegel article had not been the only serious open public criticism targeting Borgward at this time: suddenly stridently negative (if more succinct) comments also resulted in in the influential mass-market Bild newspaper and in television reviews. Critical media commentaries likewise appeared concerning large loans for the Borgward Group provided because of the local Landesbank.It is apparent that the business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses including auto manufacturing use their 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 in season than today, with sales diminishing with Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars by the end of 1960 was beyond usual, reflecting ambitious growth options, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered by the North American dealers in 1960 (and of the 12, 000 delivered to these people) 6, 000 might have to be taken back following a slump in Us demand. (Borgward was not really the only European auto maker hit by way of North American slump sought after for imported cars during 1960. In the same 12 months two ships carrying Renault Dauphines were turned last mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the lending company for a further a single million Marks of credit rating, the loan to be backed by way of guarantee from the Bremen local government which initially the Bremen senators decided to provide. However, following the flood of critical press comment this senators withdrew their ensure. They now required Carl Borgward to pledge the company itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported inside a still hostile media, Borgward agreed to the actual senate’s terms on 5 February 1961, thereby averting the bankruptcy in the business.The Bremen Senate also insisted on appointing a unique nominee as chairman from the company’s supervisory board. The man they decided was Johannes Semler to whom reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated directly into English, does less than full justice for the breadth of Semler’s job. He had studied legislation at university and worked initially as being a lawyer. The scion of a top Hamburg political family, in 1945 he acquired himself been a founding person in the centre-right CSU bash, and was a member of the Bundestag between 1950 along with 1953. Despite his Hamburg beginnings, Semler was by now based in Munich, with a network of contacts inside Bavarian establishment that probably included fellow CSU politician along with the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler inside a top administrative position in the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators to chair the Borgward supervisory mother board would, in retrospect, contribute to the dispute that followed the Borgward individual bankruptcy.
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In 28 July 1961 Semler, as Chairman of the actual supervisory board joined the directors on the three companies Borgward, Goliath and Lloyd to instigate proceedings for the establishment of a “Vergleichsverfahren”, which would have provided to get a court sanctioned scheme of arrangement enabling the organization to continue to trade while as well protecting the interests associated with creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath companies were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of his own, never had any objective of allowing the Borgward auto-businesses to be able to survive.
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