Borgward is an automobile manufacturer originally created by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in your 1960s. The Borgward group generated four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's son, Christian Borgward, together with his partner Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the businesses first new car inside over 40 years, the BX7 at your 2015 International Motor Indicate.The origins of Bremen's most significant auto-business get back on 1905 with the institution in nearby Varel with the "Hansa Automobilgesellschaft" and the foundation in Bremen itself regarding "Namag", maker of the Lloyd car or truck. These two businesses merged in 1914 to the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial crisis then confronting Germany, the business failed to prosper and from the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the possibility greatly to expand the actual scope of his automobile business, and he took control of computer.
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The 1st "automobile" Carl Borgward made was the 1924 Blitzkarren (lightning cart), a sort of very small three-wheeled van with a couple of hp (1. 5 kW), which was an enormous success out there gap it filled. Traders with a small budget purchased for delivery. The Reichspost ordered most of them 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 nowadays evolved into the even now three wheeler timber framed synthetic leather bodied 5 or maybe 7 hp Goliath Leading. Borgward turned his awareness of the other businesses along with led the development from the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 as well as in 1939 the brand was shortened to Borgward 2000. The 2000 model was as well as the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from corporations he had acquired over time to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase how much steel allocated to his business during a period of austerity and rationing. For many purposes the companies would be run to be a single entity, but in a business operated by a man to whom delegation wouldn't come naturally the expansion of legal entities however added unhelpful layers of complexity with the 1950s and encouraged a broadening on the range which in the end proved financially unsustainable while using the sales volumes achievable. In 1949 company presented the Borgward Hansa 1500.On the list of top engineers at Borgward through 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's hottest model and remained in production for that life of the company. In 1960 the Borgward P100 seemed to be 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 transforming into a successful Formula Two power unit (which was also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such as air suspension and automatic transmission, the company had trouble competing in the market. While larger companies such as 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 greater than necessary for its measurement, as it basically handled as four tiny independent companies and not implemented such basic cost reduction strategies as articulation development and parts sharing relating to the company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced as being a water-cooled boxer with entry wheel drive, but plagued with problems such as water leakage and gearbox snags. Lloyd lost money on the car community . was more expensive than its direct competitors.In 1961, the company was required into liquidation by collectors. Carl Borgward died within July 1963, still insisting the company was technically solvent. This proved to be true inside the sense that after your creditors were paid fully, there was still 5. 5 million Marks left from the business.
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Reviews of difficulties at Borgward surfaced in an article that appeared within Germany's leading news journal, “Der Spiegel” on age 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 front cover. It was strongly essential of Carl Borgward's organization approach, and included many of the arguments later advanced to spellout or justify the businesses demise. The widest range regarding cars from any producer in Germany, produced by three until eventually recently operationally autonomous firms (Borgward, Goliath and Lloyd) seemed to be supporting a turnover regarding only 650 million Scars, placing the overall sales value in the combined Borgward auto firms only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation associated with new and modified versions featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") provided rise to components which excessively did not work, broke down or droped apart, resulting in massive costs for pre-delivery remediation and/or publish delivery warranty work that found their in the past to the company.The December 1960 Spiegel article has not been the only serious public criticism targeting Borgward at this time: suddenly stridently negative (in the event that more succinct) comments also resulted in in the influential mass-market Bild magazine and in television reviews. Critical media commentaries also appeared concerning large loans for the Borgward Group provided through the local Landesbank.It is apparent that this business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses for example auto manufacturing use the expensive machines and tools most efficiently as long as they use them constantly on full capacity, but the car market in Europe within the 1950s/60s was more seasonal than today, with sales diminishing inside Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars by the end of 1960 was above usual, reflecting ambitious growth strategies, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered through the North American dealers inside 1960 (and from the 12, 000 delivered to these people) 6, 000 might have being taken back following a slump in North american demand. (Borgward was not really the only European auto maker hit by a North American slump successful for imported cars in the course of 1960. In the same year two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
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At the conclusion of December 1960 Borgward approached the lender for a further one million Marks of credit, the loan to be backed by the guarantee from the Bremen local government which initially the Bremen senators decided provide. However, following the flood associated with critical press comment the actual senators withdrew their promise. They now required Carl Borgward to pledge the company 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 the particular senate’s terms on 5 February 1961, thereby averting the bankruptcy on the business.The Bremen Senate in addition insisted on appointing a nominee as chairman of the company’s supervisory board. The man they chose was Johannes Semler to whom reports generally describe to be a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice on the breadth of Semler’s profession. He had studied law at university and worked initially as a lawyer. The scion of a number one Hamburg political family, in 1945 he acquired himself been a founding member of the centre-right CSU bash, and was a person in the Bundestag between 1950 as well as 1953. Despite his Hamburg sources, Semler was by this time around based in Munich, with a network of contacts inside Bavarian establishment that likely included fellow CSU politician plus the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a top administrative position from the 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 conflict that followed the Borgward bankruptcy.
About 28 July 1961 Semler, as Chairman of this supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings for that establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while while doing so protecting the interests involving creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” get suggested that Semler, for reasons of his very own, never had any intent of allowing the Borgward auto-businesses in order to survive.
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