Borgward is surely 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 developed four brands of automobiles: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's son, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the businesses first new car within over 40 years, the BX7 at your 2015 International Motor Display.The origins of Bremen's most significant auto-business get back on 1905 with the institution in nearby Varel from the "Hansa Automobilgesellschaft" and the building blocks in Bremen itself involving "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 in order 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 with the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the possibility greatly to expand this scope of his automotive business, and he took control than it.
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The very first "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo cart), a sort of little three-wheeled van with 2 hp (1. 5 kW), which was an enormous success in 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 movie director of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the nonetheless three wheeler timber framed synthetic leather bodied 5 or perhaps 7 hp Goliath Master. Borgward turned his awareness of the other businesses along with led the development from the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 along with in 1939 the name 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 organizations he had acquired over the years to found three separate companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business at the same time of austerity and rationing. For many purposes the lenders would be run being a single entity, but in a business operated by way of a man to whom delegation did not come naturally the spreading of legal entities however added unhelpful layers of complexity with the 1950s and encouraged a broadening with the range which finally proved financially unsustainable while using 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 in-demand model and remained in production to the life of the corporation. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers inside 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 while air suspension and automatic transmission, the company had trouble competing in the market. While larger companies like Opel and VW took benefit of economies of scale in addition to kept their prices low to get market share, Borgward's cost structure was even greater than necessary for its sizing, as it basically operated as four tiny independent companies and don't implemented such basic cost reduction strategies as shared development and parts sharing involving the company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced being 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 even though 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 had been technically solvent. This proved to be true inside the sense that after the particular creditors were paid in full, there was still four. 5 million Marks remaining from the business.
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Studies of difficulties at Borgward surfaced in the article that appeared with Germany's leading news publication, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted by means of a picture of Borgward, cigar in mouth, on the magazine’s top cover. It was strongly essential of Carl Borgward's enterprise approach, and included many from the arguments later advanced to spell out or justify the company's demise. The widest range connected with cars from any producer in Germany, produced by three until finally recently operationally autonomous firms (Borgward, Goliath and Lloyd) seemed to be supporting a turnover associated with only 650 million Grades, placing the overall sales value through the combined Borgward auto corporations only in fifth placement among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation regarding new and modified versions featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") afforded rise to components which excessively did not work, broke down or chop down apart, resulting in massive charges for pre-delivery remediation and/or post delivery warranty work that found their made use of to the company.The December 1960 Spiegel article was not the only serious community criticism targeting Borgward currently: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild magazine and in television reviews. Critical media commentaries additionally appeared concerning large loans for the Borgward Group provided by the local Landesbank.It is apparent that this business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses like auto manufacturing use their own expensive machines and tools most efficiently as long as they use them constantly at full capacity, but the car market in Europe within the 1950s/60s was more temporary than today, with sales diminishing throughout Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars by the end of 1960 was above usual, reflecting ambitious growth ideas, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered by the North American dealers with 1960 (and in the 12, 000 delivered to these) 6, 000 might have to get taken back following a slump in American demand. (Borgward was not really the only European auto maker hit by a North American slump widely used for imported cars through 1960. In the same yr two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
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Towards the end of December 1960 Borgward approached the bank for a further 1 million Marks of credit, the loan to be backed by a guarantee from the Bremen regional government which initially the Bremen senators decided provide. However, following the flood involving critical press comment the senators withdrew their guarantee. They now required Carl Borgward to pledge this company itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported inside a still hostile media, Borgward agreed to the actual senate’s terms on 4 February 1961, thereby averting the bankruptcy of the business.The Bremen Senate likewise insisted on appointing its nominee as chairman of the company’s supervisory board. The man they select was Johannes Semler with whom reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice towards breadth of Semler’s job. He had studied regulation at university and worked initially like a lawyer. The scion of a top Hamburg political family, in 1945 he received himself been a founding person in the centre-right CSU party, and was a person in the Bundestag between 1950 and also 1953. Despite his Hamburg sources, Semler was by on this occasion based in Munich, with a network of contacts inside Bavarian establishment that possibly included fellow CSU politician plus the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler inside a top administrative position inside Bizone. The appointment of Johannes Semler as the representative of the Bremen senators to chair the Borgward supervisory panel would, in retrospect, contribute to the conflict that followed the Borgward personal bankruptcy.
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About 28 July 1961 Semler, as Chairman of this supervisory board joined the directors with the three companies Borgward, Goliath and Lloyd to instigate proceedings for the establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling this company to continue to trade while at the same time protecting the interests associated with creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of her own, never had any intention of allowing the Borgward auto-businesses to help survive.
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