Borgward is usually an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen inside Germany, ceased operations in the particular 1960s. The Borgward group generated four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grand son, Christian Borgward, together with his spouse Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the company's first new car inside over 40 years, the BX7 at the particular 2015 International Motor Present.The origins of Bremen's most significant auto-business get back on 1905 with the organization in nearby Varel with the "Hansa Automobilgesellschaft" and the foundation in Bremen itself of "Namag", maker of the Lloyd car. These two businesses merged in 1914 to 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 of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the scope of his automobile business, and he took control than it.
Borgward BX7
The 1st "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo cart), a sort of small three-wheeled van with only two hp (1. 5 kW), which was an enormous success out there gap it filled. Traders with a small budget bought it for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the director of Hansa Lloyd AG having had the oppertunity to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had nowadays evolved into the nonetheless three wheeler timber presented synthetic leather bodied 5 as well as 7 hp Goliath Leading. Borgward turned his care about the other businesses in addition to led the development of the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 as well as in 1939 the name was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used some of the brand names from corporations he had acquired in recent times to found three distinct companies: Borgward, Goliath and Lloyd. This was intended to increase how much 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 by the man to whom delegation didn't come naturally the expansion of legal entities on the other hand added unhelpful layers of complexity through the 1950s and encouraged a broadening on the range which eventually proved financially unsustainable while using the sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.Among the top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started in 1954. The Isabella would become Borgward's most in-demand model and remained in production for the life of the organization. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers from the late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (that is also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such while air suspension and intelligent transmission, the company had trouble competing in the marketplace. While larger companies such as Opel and VW took advantage of economies of scale in addition to kept their prices low to achieve market share, Borgward's cost structure was even beyond necessary for its sizing, as it basically handled as four tiny independent companies and never implemented such basic cost reduction strategies as shared development and parts sharing between company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced like a water-cooled boxer with the front wheel drive, but plagued with problems such as water leakage and gearbox secrets. Lloyd lost money on the car just about the most was more expensive when compared 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 was technically solvent. This proved to be true inside the sense that after your creditors were paid 100 %, there was still some. 5 million Marks remaining from the business.
Borgward BX7
Reviews of difficulties at Borgward surfaced within an article that appeared in 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 front cover. It was strongly vital of Carl Borgward's small business approach, and included many on the arguments later advanced to spell out or justify the firm's demise. The widest range connected with cars from any producer in Germany, produced by three until finally recently operationally autonomous organizations (Borgward, Goliath and Lloyd) ended up being supporting a turnover of only 650 million Scars, 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 of new and modified models featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") provided rise to components which many times did not work, broke down or fell into apart, resulting in massive charges for pre-delivery remediation and/or submit delivery warranty work that found their way back to the company.The December 1960 Spiegel article was not the only serious open public criticism targeting Borgward at this time: suddenly stridently negative (in case more succinct) comments also turned up in the influential mass-market Bild newspapers and in television studies. Critical media commentaries additionally appeared concerning large loans towards the Borgward Group provided because of the local Landesbank.It is apparent how the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses for instance auto manufacturing use the expensive machines and tools most efficiently whenever they use them constantly at full capacity, but the car market in Europe within the 1950s/60s was more in season than today, with sales diminishing with Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars at the end of 1960 was beyond usual, reflecting ambitious growth plans, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered with the North American dealers with 1960 (and in the 12, 000 delivered to these) 6, 000 might have to be taken back following a slump in American demand. (Borgward was not the one European auto maker hit by the North American slump widely used for imported cars during 1960. In the same 12 months two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
Borgward BX7
Right at the end of December 1960 Borgward approached the financial institution for a further just one 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 involving critical press comment the actual senators withdrew their ensure. They now required Carl Borgward to pledge the business itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported in a still hostile media, Borgward agreed to the senate’s terms on four February 1961, thereby averting the bankruptcy from the business.The Bremen Senate additionally insisted on appointing its very own nominee as chairman with the company’s supervisory board. The man they decided to go with was Johannes Semler with whom reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice for the breadth of Semler’s profession. He had studied legislation at university and worked initially as being a lawyer. The scion of a leading Hamburg political family, in 1945 he received himself been a founding person in the centre-right CSU party, and was a member of the Bundestag between 1950 and also 1953. Despite his Hamburg roots, Semler was by now based in Munich, with a network of contacts within the Bavarian establishment that likely included fellow CSU politician along with the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position within the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators for you to chair the Borgward supervisory table would, in retrospect, contribute to the conflict that followed the Borgward bankruptcy.
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With 28 July 1961 Semler, as Chairman of this supervisory board joined the directors on the three companies Borgward, Goliath and Lloyd to instigate proceedings to the establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling the company to continue to trade while concurrently protecting the interests involving creditors. [16] Two months later on, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of her own, never had any objective of allowing the Borgward auto-businesses in order to survive.
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