Borgward is usually an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in the particular 1960s. The Borgward group made four brands of cars: 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 Far east investment, and unveiled the corporation's first new car in over 40 years, the BX7 at the 2015 International Motor Show.The origins of Bremen's most significant auto-business resume 1905 with the institution in nearby Varel with the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself regarding "Namag", maker of the Lloyd car or truck. These two businesses merged in 1914 in order to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial status then confronting Germany, the business failed to prosper and because of the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand the actual scope of his vehicle business, and he took control of it.
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The 1st "automobile" Carl Borgward made was the 1924 Blitzkarren (turbo cart), a sort of very small three-wheeled van with only two hp (1. 5 kW), which was an enormous success already in the market gap it filled. Traders with a small budget ordered for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the nonetheless three wheeler timber framed synthetic leather bodied 5 or maybe 7 hp Goliath Pioneer. Borgward turned his care about the other businesses along with led the development of the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 as well as in 1939 the identify was shortened to Borgward 2000. The 2000 model was followed by the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from businesses he had acquired over the years to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase the amount of steel allocated to his business each time of austerity and rationing. For many purposes the firms would be run as being a single entity, but in a business operated by way of a man to whom delegation would not come naturally the spreading of legal entities nonetheless added unhelpful layers of complexity throughout the 1950s and encouraged a broadening with the range which finally proved financially unsustainable while using the sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.One of many top engineers at Borgward coming 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 with the life of the corporation. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a brand of 1500 cc sports racers in the late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (which has been also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties in the German market such because air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies like Opel and VW took selling point of economies of scale along with kept their prices low to gain market share, Borgward's cost structure was even beyond necessary for its measurement, as it basically operated as four tiny independent companies and don't implemented such basic charge reduction strategies as joint development and parts sharing relating to the company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced as being a water-cooled boxer with front wheel drive, but plagued with problems for example water leakage and gearbox secrets. Lloyd lost money on the car even though it was more expensive than its direct competitors.In 1961, the company was pressured into liquidation by lenders. Carl Borgward died within July 1963, still insisting the company ended up technically solvent. This proved to be true inside the sense that after your creditors were paid in full, there was still some. 5 million Marks left from the business.
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Reviews of difficulties at Borgward surfaced within an article that appeared inside Germany's leading news magazine, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places repetitive Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s top cover. It was strongly important of Carl Borgward's business approach, and included many of the arguments later advanced to go into detail or justify the firm's demise. The widest range associated with cars from any manufacturer in Germany, produced by three right up until recently operationally autonomous businesses (Borgward, Goliath and Lloyd) seemed to be supporting a turnover involving only 650 million Marks, placing the overall sales value in the combined Borgward auto organizations 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 models featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") offered rise to components which too often did not work, broke down or droped apart, resulting in massive charges for pre-delivery remediation and/or write-up delivery warranty work that found their long ago to the company.The December 1960 Spiegel article was not the only serious public criticism targeting Borgward presently: suddenly stridently negative (in the event that more succinct) comments also resulted in in the influential mass-market Bild classifieds and in television stories. Critical media commentaries additionally 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 end of 1960. Capital intensive businesses for instance auto manufacturing use their expensive machines and tools most efficiently whenever they use them constantly from full capacity, but the car market in Europe inside 1950s/60s was more seasons than today, with sales diminishing throughout Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars towards the end of 1960 was more than usual, reflecting ambitious growth programs, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered through the North American dealers within 1960 (and with the 12, 000 delivered to them) 6, 000 might have to get taken back following a slump in North american demand. (Borgward was not the one European auto maker hit by way of North American slump popular for imported cars throughout 1960. In the same 12 months two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the lending company for a further just one million Marks of credit history, the loan to be backed by way of guarantee from the Bremen regional government which initially the Bremen senators agreed to provide. However, following the flood of critical press comment this senators withdrew their promise. They now required Carl Borgward to pledge the organization itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported in a very still hostile media, Borgward agreed to the senate’s terms on 5 February 1961, thereby averting the bankruptcy in the business.The Bremen Senate likewise insisted on appointing its own nominee as chairman from the company’s supervisory board. The man they decided to go with was Johannes Semler who reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice towards the breadth of Semler’s occupation. He had studied rules at university and worked initially being a lawyer. The scion of a respected Hamburg political family, in 1945 he acquired 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 beginnings, Semler was by now based in Munich, with a network of contacts from the Bavarian establishment that probably included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler inside a top administrative position in the Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators to help chair the Borgward supervisory board would, in retrospect, contribute to the conflict that followed the Borgward a bankruptcy proceeding.
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With 28 July 1961 Semler, as Chairman of the supervisory board joined the directors of the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided for just a court sanctioned scheme of arrangement enabling this company to continue to trade while as well protecting the interests associated with creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” get suggested that Semler, for reasons of her own, never had any goal of allowing the Borgward auto-businesses to survive.
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