Borgward is usually an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the 1960s. The Borgward group created 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 partner Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the corporation's first new car throughout over 40 years, the BX7 at the 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business resume 1905 with the institution in nearby Varel with the "Hansa Automobilgesellschaft" and the building blocks in Bremen itself involving "Namag", maker of the Lloyd vehicle. 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 with the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the particular scope of his automotive business, and he took control from it.
Borgward BX7
The first "automobile" Carl Borgward made was the 1924 Blitzkarren (super cart), a sort of very small three-wheeled van with only two hp (1. 5 kW), which was an enormous success available in the market 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 home of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or maybe 7 hp Goliath Leading. Borgward turned his care about the other businesses in addition to led the development from the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 and also in 1939 the label was shortened to Borgward 2000. The 2000 model was then the Borgward 2300that continued to be 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 separate companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business at any given time of austerity and rationing. For many purposes the businesses would be run like a single entity, but in a business operated by way of man to whom delegation failed to come naturally the spreading of legal entities even so added unhelpful layers of complexity throughout the 1950s and encouraged a broadening with the range which in the long run proved financially unsustainable while using sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.Among the top engineers at Borgward by 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's most popular model and remained in production to the life of the company. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a type 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 many F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such since air suspension and programmed transmission, the company had trouble competing available. While larger companies such as Opel and VW took good thing about economies of scale and also kept their prices low to get market share, Borgward's cost structure was even higher than necessary for its dimensions, as it basically operated as four tiny independent companies rather than implemented such basic cost reduction strategies as combined development and parts sharing between your company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced like a water-cooled boxer with entry wheel drive, but plagued with problems like water leakage and gearbox secrets. Lloyd lost money on the car though it was more expensive than its direct competitors.In 1961, the company was pressured into liquidation by lenders. Carl Borgward died in July 1963, still insisting the company ended up technically solvent. This proved to be true in the sense that after the actual creditors were paid 100 %, there was still several. 5 million Marks left over from the business.
Borgward BX7
Reports of difficulties at Borgward surfaced within the article that appeared in Germany's leading news publication, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places repetitive Spiegel article was highlighted through a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly essential of Carl Borgward's small business approach, and included many with the arguments later advanced to describe or justify the company's demise. The widest range of cars from any company in Germany, produced by three until finally recently operationally autonomous companies (Borgward, Goliath and Lloyd) was supporting a turnover connected with only 650 million Marks, placing the overall sales value through the combined Borgward auto firms only in fifth placement among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation associated with new and modified types featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") offered rise to components which too often 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 sources that are to the company.The December 1960 Spiegel article hasn't been the only serious general public criticism targeting Borgward at the moment: suddenly stridently negative (when more succinct) comments also turned up in the influential mass-market Bild newspapers and in television accounts. Critical media commentaries likewise appeared concerning large loans for the Borgward Group provided by the local Landesbank.It is apparent the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses like auto manufacturing use their own expensive machines and tools most efficiently when they use them constantly from full capacity, but the car market in Europe in the 1950s/60s was more periodic than today, with sales diminishing with Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was above usual, reflecting ambitious growth strategies, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered from the North American dealers in 1960 (and from 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 only European auto maker hit by a North American slump in demand for imported cars during 1960. In the same 12 months two ships carrying Renault Dauphines were turned back mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
Borgward BX7
By the end of December 1960 Borgward approached the lender for a further 1 million Marks of credit score, the loan to be backed by way of guarantee from the Bremen local government which initially the Bremen senators agreed to provide. However, following the flood of critical press comment the senators withdrew their guarantee. They now required Carl Borgward to pledge the 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 this senate’s terms on several February 1961, thereby averting the bankruptcy on the business.The Bremen Senate in addition 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 as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice on the breadth of Semler’s career. He had studied regulation at university and worked initially as being a lawyer. The scion of a number one Hamburg political family, in 1945 he had 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 sources, Semler was by on this occasion based in Munich, with a network of contacts from the Bavarian establishment that almost certainly 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 as the representative of the Bremen senators to be able to chair the Borgward supervisory aboard would, in retrospect, contribute to the controversy that followed the Borgward chapter 7.
The Borgward BX7, resurrecting the Borgward brand name after 50 years
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 that establishment of a “Vergleichsverfahren”, which would have provided for just a court sanctioned scheme of arrangement enabling the business to continue to trade while simultaneously protecting the interests involving creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” have got suggested that Semler, for reasons of his or her own, never had any purpose of allowing the Borgward auto-businesses to be able to survive.
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