Borgward is surely an automobile manufacturer originally started 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 automobiles: Borgward, Hansa, Goliath and Lloyd.The marque has due to the fact been revived by Carl Borgward's grand son, Christian Borgward, together with his spouse Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the firm's first new car within over 40 years, the BX7 at the actual 2015 International Motor Present.The origins of Bremen's most significant auto-business get back on 1905 with the place in nearby Varel in the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself involving "Namag", maker of the Lloyd auto. These two businesses merged in 1914 in order to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economy then confronting Germany, the business failed to prosper and because of the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the particular scope of his auto business, and he took control from it.
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The first "automobile" Carl Borgward developed was the 1924 Blitzkarren (turbo cart), a sort of small three-wheeled van with a couple of hp (1. 5 kW), which was an enormous success in the market gap it filled. Traders with a small budget bought for delivery. The Reichspost ordered some of them for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the nonetheless three wheeler timber presented synthetic leather bodied 5 or 7 hp Goliath Founder. Borgward turned his care about the other businesses and led the development with the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 and in 1939 the title was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that always been in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from firms he had acquired in recent times to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the number of steel allocated to his business during a period of austerity and rationing. For many purposes nokia's would be run like a single entity, but in a business operated with a man to whom delegation failed to come naturally the growth of legal entities however added unhelpful layers of complexity with the 1950s and encouraged a broadening of the range which ultimately proved financially unsustainable while using the sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.Among the top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most favored model and remained in production for the life of the firm. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (that is also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such as air suspension and automatic transmission, the company had trouble competing out there. While larger companies including Opel and VW took good thing about economies of scale in addition to kept their prices low to gain market share, Borgward's cost structure was even beyond necessary for its measurement, as it basically controlled as four tiny independent companies and not implemented such basic charge reduction strategies as articulation development and parts sharing between the company's makes. Borgward suffered quality problems at the same time. The Lloyd Arabella was technically advanced as a water-cooled boxer with front wheel drive, but plagued with problems including water leakage and gearbox glitches. Lloyd lost money on the car even though it was more expensive as compared to its direct competitors.In 1961, the company was compelled into liquidation by creditors. Carl Borgward died inside July 1963, still insisting the company were being technically solvent. This proved to be true in the sense that after the actual creditors were paid 100 %, there was still some. 5 million Marks left from the business.
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Studies of difficulties at Borgward surfaced in the article that appeared in Germany's leading news mag, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted by means of a picture of Borgward, cigar in mouth, on the magazine’s entrance cover. It was strongly important of Carl Borgward's enterprise approach, and included many with the arguments later advanced to explain or justify the corporation's demise. The widest range connected with cars from any company in Germany, produced by three till recently operationally autonomous corporations (Borgward, Goliath and Lloyd) had been supporting a turnover of only 650 million Marks, placing the overall sales value through the combined Borgward auto organizations only in fifth position among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation regarding new and modified products featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") provided rise to components which excessively did not work, broke down or fell apart, resulting in massive expenses for pre-delivery remediation and/or publish delivery warranty work that found their long ago to the company.The December 1960 Spiegel article wasn't the only serious open criticism targeting Borgward currently: suddenly stridently negative (in the event that more succinct) comments also resulted in in the influential mass-market Bild classifieds and in television reports. Critical media commentaries also appeared concerning large loans for the Borgward Group provided because of the local Landesbank.It is apparent how the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses including auto manufacturing use their particular expensive machines and tools most efficiently should they use them constantly at full capacity, but the car market in Europe inside the 1950s/60s was more in season than today, with sales diminishing in Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars at the end of 1960 was greater than usual, reflecting ambitious growth strategies, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered from the North American dealers throughout 1960 (and on the 12, 000 delivered to these individuals) 6, 000 might have to become taken back following a slump in Us demand. (Borgward was not the only real European auto maker hit by way of a North American slump widely used for imported cars while in 1960. In the same yr two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in Nyc were overcrowded with unsold Dauphines.
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At the end of December 1960 Borgward approached your banker for a further a single million Marks of credit rating, the loan to be backed by a guarantee from the Bremen regional government which initially the Bremen senators opted for provide. However, following the flood associated with critical press comment this senators withdrew their assure. They now required Carl Borgward to pledge this 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 the actual senate’s terms on several February 1961, thereby averting the bankruptcy of the business.The Bremen Senate likewise insisted on appointing a unique nominee as chairman of the company’s supervisory board. The man they chose was Johannes Semler who reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated straight into English, does less than full justice to the breadth of Semler’s job. He had studied rules at university and worked initially to be a lawyer. The scion of a top Hamburg political family, in 1945 he acquired himself been a founding member of the centre-right CSU get together, and was a member of the Bundestag between 1950 along with 1953. Despite his Hamburg beginning, Semler was by these times based in Munich, with a network of contacts from the Bavarian establishment that almost certainly included fellow CSU politician along with the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a top administrative position within the Bizone. The appointment of Johannes Semler as the representative of the Bremen senators to help chair the Borgward supervisory board would, in retrospect, contribute to the controversy that followed the Borgward personal bankruptcy.
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Upon 28 July 1961 Semler, as Chairman of the supervisory board joined the directors on the three companies Borgward, Goliath and Lloyd to instigate proceedings with the establishment of a “Vergleichsverfahren”, which would have provided for the court sanctioned scheme of arrangement enabling the business to continue to trade while concurrently protecting the interests connected with creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of their own, never had any intention of allowing the Borgward auto-businesses in order to survive.
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