Borgward is surely an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in the particular 1960s. The Borgward group developed four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Oriental investment, and unveiled the company's first new car with over 40 years, the BX7 at this 2015 International Motor Show.The origins of Bremen's most significant auto-business return to 1905 with the place in nearby Varel with the "Hansa Automobilgesellschaft" and the building blocks in Bremen itself connected with "Namag", maker of the Lloyd car or truck. These two businesses merged in 1914 to form 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 bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the particular scope of his vehicle business, and he took control of it.
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The 1st "automobile" Carl Borgward intended was the 1924 Blitzkarren (lightning cart), a sort of teeny three-wheeled van with 3 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 movie director of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or perhaps 7 hp Goliath Leader. Borgward turned his attention to the other businesses in addition to led the development of the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 and also in 1939 the title was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that always been in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from companies he had acquired through the years to found three distinct companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business at any given time of austerity and rationing. For many purposes the firms would be run to be a single entity, but in a business operated by the man to whom delegation wouldn't come naturally the proliferation of legal entities even so added unhelpful layers of complexity through the 1950s and encouraged a broadening from the range which ultimately proved financially unsustainable using the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.One of several top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella began in 1954. The Isabella would become Borgward's most in-demand model and remained in production to the life of the firm. In 1960 the Borgward P100 was introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers within the late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (that is also used by a number of F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such because air suspension and programmed transmission, the company had trouble competing in the marketplace. While larger companies such as Opel and VW took good thing about economies of scale along with kept their prices low to realize market share, Borgward's cost structure was even higher than necessary for its size, as it basically run as four tiny independent companies and do not implemented such basic charge reduction strategies as shared development and parts sharing between company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced being a water-cooled boxer with entrance wheel drive, but plagued with problems like water leakage and gearbox mistakes. Lloyd lost money on the car although it was more expensive as compared to its direct competitors.In 1961, the company was required into liquidation by credit card companies. Carl Borgward died in July 1963, still insisting the company was technically solvent. This proved to be true from the sense that after the actual creditors were paid fully, there was still four. 5 million Marks remaining from the business.
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Stories of difficulties at Borgward surfaced within an article that appeared in Germany's leading news publication, “Der Spiegel” on 14 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly crucial of Carl Borgward's small business approach, and included many on the arguments later advanced to go into detail or justify the businesses demise. The widest range involving cars from any maker in Germany, produced by three until eventually recently operationally autonomous organizations (Borgward, Goliath and Lloyd) had been supporting a turnover of only 650 million Scars, placing the overall sales value through the combined Borgward auto corporations only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation associated with 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 droped 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 wasn't the only serious public criticism targeting Borgward currently: suddenly stridently negative (if more succinct) comments also turned up in the influential mass-market Bild classifieds and in television stories. Critical media commentaries also appeared concerning large loans to the Borgward Group provided from the local Landesbank.It is apparent that the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses such as auto manufacturing use their particular expensive machines and tools most efficiently when they use them constantly with full capacity, but the car market in Europe inside the 1950s/60s was more temporary than today, with sales diminishing with Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars towards the end of 1960 was higher than usual, reflecting ambitious growth ideas, 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 with 1960 (and with the 12, 000 delivered to these people) 6, 000 might have to get taken back following a slump in United states demand. (Borgward was not the one European auto maker hit with a North American slump popular for imported cars in the course of 1960. In the same calendar year two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
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At the end of December 1960 Borgward approached the bank for a further a single million Marks of credit ratings, the loan to be backed with a guarantee from the Bremen local government which initially the Bremen senators agreed to provide. However, following the flood associated with critical press comment your senators withdrew their assure. They now required Carl Borgward to pledge this 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 four February 1961, thereby averting the bankruptcy on the business.The Bremen Senate furthermore insisted on appointing its own nominee as chairman with the company’s supervisory board. The man they selected was Johannes Semler who reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice for the breadth of Semler’s career. He had studied legislations at university and worked initially like a lawyer. The scion of a leading Hamburg political family, in 1945 he experienced 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 this time around based in Munich, with a network of contacts inside the Bavarian establishment that possibly included fellow CSU politician along with 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 be able to chair the Borgward supervisory board would, in retrospect, contribute to the dispute that followed the Borgward chapter 7.
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With 28 July 1961 Semler, as Chairman of this supervisory board joined the directors of the three companies Borgward, Goliath and Lloyd to instigate proceedings for the establishment of a “Vergleichsverfahren”, which would have provided for the court sanctioned scheme of arrangement enabling this company to continue to trade while simultaneously protecting the interests involving creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November through the Lloyd business. Subsequent “conspiracy theorists” get suggested that Semler, for reasons of their own, never had any goal of allowing the Borgward auto-businesses to be able to survive.
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