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Borgward can be an automobile manufacturer originally created by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in your 1960s. The Borgward group created four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grandson, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the businesses first new car in over 40 years, the BX7 at the particular 2015 International Motor Show.The origins of Bremen's most significant auto-business get back to 1905 with the establishment in nearby Varel with the "Hansa Automobilgesellschaft" and the building blocks in Bremen itself regarding "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial status then confronting Germany, the business failed to prosper and through the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator from the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the scope of his car business, and he took control from it.

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The very first "automobile" Carl Borgward designed was the 1924 Blitzkarren (lightning cart), a sort of little three-wheeled van with 2 hp (1. 5 kW), which was an enormous success available in the market gap it filled. Traders with a small budget bought for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the nonetheless three wheeler timber presented synthetic leather bodied 5 or maybe 7 hp Goliath Founder. Borgward turned his care about the other businesses as well as led the development in the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 along with in 1939 the identify was shortened to Borgward 2000. The 2000 model was then the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from companies he had acquired in the past to found three different 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 lenders would be run as being a single entity, but in a business operated by a man to whom delegation failed to come naturally the expansion of legal entities nevertheless added unhelpful layers of complexity through the 1950s and encouraged a broadening on the range which in the long run proved financially unsustainable with the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.One of the 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 widely used model and remained in production with the life of the corporation. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers within the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (that has been also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such while air suspension and computerized transmission, the company had trouble competing available on the market. While larger companies like Opel and VW took selling point of economies of scale and also kept their prices low to achieve market share, Borgward's cost structure was even more than necessary for its dimensions, as it basically run as four tiny independent companies and don't implemented such basic price tag reduction strategies as joint development and parts sharing involving the company's makes. Borgward suffered quality problems at the same time. The Lloyd Arabella was technically advanced to be a water-cooled boxer with the front wheel drive, but plagued with problems for example water leakage and gearbox mistakes. Lloyd lost money on the car though it was more expensive compared to its direct competitors.In 1961, the company was pushed into liquidation by loan companies. Carl Borgward died with July 1963, still insisting the company have been technically solvent. This proved to be true within the sense that after this creditors were paid completely, there was still four. 5 million Marks remaining from the business.

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Reviews of difficulties at Borgward surfaced within an article that appeared throughout Germany's leading news publication, “Der Spiegel” on fourteen 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 top cover. It was strongly crucial of Carl Borgward's business approach, and included many with the arguments later advanced to explain or justify the corporation's demise. The widest range connected with cars from any maker in Germany, produced by three until eventually recently operationally autonomous businesses (Borgward, Goliath and Lloyd) had been supporting a turnover involving only 650 million Grades, placing the overall sales value from your combined Borgward auto organizations 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 products featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") afforded rise to components which excessively did not work, broke down or fell into apart, resulting in massive payments for pre-delivery remediation and/or article delivery warranty work that found their way back to the company.The December 1960 Spiegel article has not been the only serious open public criticism targeting Borgward currently: suddenly stridently negative (if more succinct) comments also turned up in the influential mass-market Bild magazine and in television stories. Critical media commentaries in addition appeared concerning large loans towards Borgward Group provided by the local Landesbank.It is apparent how the business was confronting cash-flow difficulties by the end of 1960. Capital intensive businesses such as auto manufacturing use his or her expensive machines and tools most efficiently should they use them constantly in 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 early summer months: Borgward’s inventory of unsold cars by the end of 1960 was beyond usual, reflecting ambitious growth ideas, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered with the North American dealers throughout 1960 (and with the 12, 000 delivered to all of them) 6, 000 might have to become taken back following a slump in Us demand. (Borgward was not the sole European auto maker hit by way of North American slump widely used for imported cars in the course of 1960. In the same season two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.

2015 [Borgward]

Right at the end of December 1960 Borgward approached the bank for a further one particular million Marks of credit, the loan to be backed by way of guarantee from the Bremen local government which initially the Bremen senators agreed to provide. However, following the flood associated with critical press comment this senators withdrew their assurance. 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 in the still hostile media, Borgward agreed to the particular senate’s terms on some February 1961, thereby averting the bankruptcy of the business.The Bremen Senate in addition insisted on appointing a unique nominee as chairman with the company’s supervisory board. The man they decided was Johannes Semler to whom reports generally describe to be a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice towards the breadth of Semler’s career. He had studied legislations at university and worked initially as a lawyer. The scion of a top Hamburg political family, in 1945 he experienced himself been a founding person in the centre-right CSU gathering, and was a person in the Bundestag between 1950 along with 1953. Despite his Hamburg beginnings, Semler was by now based in Munich, with a network of contacts from the Bavarian establishment that probably included fellow CSU politician and also the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a very top administrative position inside the Bizone. The appointment of Johannes Semler since the representative of the Bremen senators to chair the Borgward supervisory aboard would, in retrospect, contribute to the hot debate that followed the Borgward a bankruptcy proceeding.

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With 28 July 1961 Semler, as Chairman of your supervisory board joined the directors with the three companies Borgward, Goliath and Lloyd to instigate proceedings to the establishment of a “Vergleichsverfahren”, which would have provided to get a court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while as well protecting the interests of creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November with 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 to help survive.

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