Borgward is usually an automobile manufacturer originally created by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in your 1960s. The Borgward group developed four brands of automobiles: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's son, Christian Borgward, together with his lover Karlheinz L. Knöss, with assistance from China investment, and unveiled the business's first new car throughout over 40 years, the BX7 at the 2015 International Motor Indicate.The origins of Bremen's most significant auto-business go back to 1905 with the establishment in nearby Varel of the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself associated with "Namag", maker of the Lloyd car. These two businesses merged in 1914 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 because of the late 1920s faced a bankruptcy proceeding. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand the scope of his automotive business, and he took control of computer.
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The 1st "automobile" Carl Borgward developed was the 1924 Blitzkarren (super cart), a sort of tiny three-wheeled van with two hp (1. 5 kW), which was an enormous success on the market gap it filled. Traders with a small budget purchased for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the nevertheless three wheeler timber framed synthetic leather bodied 5 or 7 hp Goliath Founder. Borgward turned his attention to the other businesses along with led the development with the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 along with in 1939 the title was shortened to Borgward 2000. The 2000 model was followed by the Borgward 2300that always been in production until 1942.After World War II, in 1946 Carl Borgward used a few of the brand names from businesses he had acquired over the years to found three independent 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 a single entity, but in a business operated by the man to whom delegation would not come naturally the growth of legal entities however added unhelpful layers of complexity over the 1950s and encouraged a broadening with the range which in the end proved financially unsustainable while using sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.One of the top engineers at Borgward by 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most popular model and remained in production with the life of the firm. In 1960 the Borgward P100 had been introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers inside late 1950s, with the 16-valve engine from these being a successful Formula Two power unit (which was also used by a number of F1 privateers in 1961).Although Borgward pioneered technical novelties in the German market such as air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies just like Opel and VW took benefit of economies of scale and kept their prices low to get market share, Borgward's cost structure was even higher than necessary for its dimensions, as it basically run as four tiny independent companies and never implemented such basic cost 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 to be a water-cooled boxer with front wheel drive, but plagued with problems for example water leakage and gearbox glitches. Lloyd lost money on the car although it was more expensive as compared to its direct competitors.In 1961, the company was pushed into liquidation by lenders. Carl Borgward died inside July 1963, still insisting the company ended up technically solvent. This proved to be true in the sense that after this creditors were paid completely, there was still four. 5 million Marks left over from the business.
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Stories of difficulties at Borgward surfaced within the article that appeared inside Germany's leading news journal, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly critical of Carl Borgward's business approach, and included many on the arguments later advanced to go into detail or justify the businesses demise. The widest range associated with cars from any supplier in Germany, produced by three till recently operationally autonomous organizations (Borgward, Goliath and Lloyd) ended up being supporting a turnover connected with only 650 million Represents, placing the overall sales value from the combined Borgward auto organizations only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence by using an increasingly manic proliferation connected with new and modified models featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") afforded rise to components which too much did not work, broke down or droped apart, resulting in massive expenses for pre-delivery remediation and/or article delivery warranty work that found their long ago to the company.The December 1960 Spiegel article wasn't the only serious community criticism targeting Borgward right now: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild paper and in television studies. Critical media commentaries also appeared concerning large loans for the Borgward Group provided through the local Landesbank.It is apparent the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses including auto manufacturing use their expensive machines and tools most efficiently when they use them constantly at full capacity, but the car market in Europe from the 1950s/60s was more temporary than today, with sales diminishing throughout Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was more than usual, reflecting ambitious growth strategies, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered by the North American dealers throughout 1960 (and from the 12, 000 delivered to them) 6, 000 might have to be taken back following a slump in American demand. (Borgward was not the only real European auto maker hit by way of North American slump sought after 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 Ny were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the lending company for a further 1 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 regarding critical press comment the actual senators withdrew their promise. 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 a still hostile media, Borgward agreed to this senate’s terms on several February 1961, thereby averting the bankruptcy from the business.The Bremen Senate also insisted on appointing its very own nominee as chairman in the company’s supervisory board. The man they decided to go with was Johannes Semler whom reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice towards the breadth of Semler’s occupation. He had studied legislations at university and worked initially like a lawyer. The scion of a respected Hamburg political family, in 1945 he experienced himself been a founding member of the centre-right CSU gathering, and was a member of the Bundestag between 1950 and also 1953. Despite his Hamburg beginning, Semler was by on this occasion based in Munich, with a network of contacts in the Bavarian establishment that almost certainly included fellow CSU politician and also the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position inside Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators for you to chair the Borgward supervisory mother board would, in retrospect, contribute to the debate that followed the Borgward a bankruptcy proceeding.
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With 28 July 1961 Semler, as Chairman of the actual supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings with the establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling the organization to continue to trade while concurrently protecting the interests connected with creditors. [16] Two months later on, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of his own, never had any objective of allowing the Borgward auto-businesses in order to survive.
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