Borgward is surely an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in your 1960s. The Borgward group created four brands of automobiles: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's son, Christian Borgward, together with his spouse Karlheinz L. Knöss, with assistance from China investment, and unveiled the business's first new car in over 40 years, the BX7 at the 2015 International Motor Display.The origins of Bremen's most significant auto-business go back to 1905 with the organization in nearby Varel in the "Hansa Automobilgesellschaft" and the walls in Bremen itself involving "Namag", maker of the Lloyd auto. These two businesses merged in 1914 in order 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 by the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand your scope of his car business, and he took control from it.
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The 1st "automobile" Carl Borgward created was the 1924 Blitzkarren (turbo cart), a sort of teeny three-wheeled van with only two hp (1. 5 kW), which was an enormous success on the market gap it filled. Traders with a small budget got it for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having had the oppertunity to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the however three wheeler timber framed synthetic leather bodied 5 or perhaps 7 hp Goliath Leader. Borgward turned his awareness of the other businesses in addition to led the development on the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 and also in 1939 the name was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a few of the brand names from organizations he had acquired through the years to found three different 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 businesses would be run to be a single entity, but in a business operated with a man to whom delegation didn't come naturally the expansion of legal entities however added unhelpful layers of complexity over the 1950s and encouraged a broadening from the range which finally proved financially unsustainable while using sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.One of several top engineers at Borgward from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started in 1954. The Isabella would become Borgward's most favored model and remained in production for that life of the company. In 1960 the Borgward P100 was introduced, equipped with pneumatic suspension.Borgward introduced a distinct 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (which has been also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such since air suspension and automatic transmission, the company had trouble competing out there. While larger companies like Opel and VW took benefit of economies of scale in addition to kept their prices low to gain market share, Borgward's cost structure was even beyond necessary for its sizing, as it basically run as four tiny independent companies and do not implemented such basic charge reduction strategies as joint development and parts sharing relating to the company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced to be a water-cooled boxer with front wheel drive, but plagued with problems for example water leakage and gearbox errors. Lloyd lost money on the car just about the most was more expensive in comparison with its direct competitors.In 1961, the company was pushed into liquidation by collectors. Carl Borgward died within July 1963, still insisting the company had been technically solvent. This proved to be true inside sense that after the particular creditors were paid 100 %, there was still several. 5 million Marks left over from the business.
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Accounts of difficulties at Borgward surfaced within the article that appeared with Germany's leading news mag, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places recurring 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 small business approach, and included many from the arguments later advanced to explain or justify the corporation's demise. The widest range regarding cars from any producer in Germany, produced by three until finally recently operationally autonomous firms (Borgward, Goliath and Lloyd) has been supporting a turnover connected with only 650 million Marks, placing the overall sales value through the combined Borgward auto corporations only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation involving new and modified versions featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") afforded rise to components which many times did not work, broke down or fell apart, resulting in massive expenses for pre-delivery remediation and/or submit delivery warranty work that found their in the past to the company.The December 1960 Spiegel article was not the only serious open criticism targeting Borgward presently: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild paper and in television stories. Critical media commentaries in addition appeared concerning large loans towards Borgward Group provided from the local Landesbank.It is apparent that the business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses like auto manufacturing use the expensive machines and tools most efficiently as long as they use them constantly on full capacity, but the car market in Europe within the 1950s/60s was more seasonal than today, with sales diminishing within Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars at the end of 1960 was more than usual, reflecting ambitious growth options, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered through the North American dealers throughout 1960 (and on the 12, 000 delivered to all of them) 6, 000 might have to be taken back following a slump in North american demand. (Borgward was not the only real European auto maker hit with a North American slump in demand for imported cars while in 1960. In the same calendar year two ships carrying Renault Dauphines were turned back mid-Atlantic because the docks in Nyc were overcrowded with unsold Dauphines.
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Towards the end of December 1960 Borgward approached the lender for a further a single million Marks of credit score, the loan to be backed by way of a guarantee from the Bremen local government which initially the Bremen senators agreed to provide. However, following the flood involving critical press comment your senators withdrew their guarantee. They now required Carl Borgward to pledge the organization itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported in the still hostile media, Borgward agreed to the senate’s terms on some February 1961, thereby averting the bankruptcy in the business.The Bremen Senate additionally insisted on appointing its very own nominee as chairman with the company’s supervisory board. The man they select was Johannes Semler with whom reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice towards breadth of Semler’s occupation. He had studied legislation at university and worked initially like a lawyer. The scion of a number one Hamburg political family, in 1945 he had himself been a founding person in the centre-right CSU celebration, and was a member of the Bundestag between 1950 in addition to 1953. Despite his Hamburg sources, Semler was by these times based in Munich, with a network of contacts inside the Bavarian establishment that almost certainly included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position in the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators to chair the Borgward supervisory table would, in retrospect, contribute to the debate that followed the Borgward personal bankruptcy.
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Upon 28 July 1961 Semler, as Chairman of this supervisory board joined the directors from the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling this company to continue to trade while as well protecting the interests connected with creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of her own, never had any objective of allowing the Borgward auto-businesses for you to survive.
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