Borgward is usually an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in the particular 1960s. The Borgward group generated four brands of autos: Borgward, Hansa, Goliath and Lloyd.The marque has due to the fact been revived by Carl Borgward's son, Christian Borgward, together with his spouse Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the firm's first new car in over 40 years, the BX7 at the actual 2015 International Motor Show.The origins of Bremen's most significant auto-business get back to 1905 with the institution in nearby Varel of the "Hansa Automobilgesellschaft" and the foundation in Bremen itself connected with "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 economy then confronting Germany, the business failed to prosper and because of the late 1920s faced chapter 7. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the actual scope of his car business, and he took control than it.
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The initial "automobile" Carl Borgward made was the 1924 Blitzkarren (turbo cart), a sort of very 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 purchased for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the home of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the still three wheeler timber framed synthetic leather bodied 5 or maybe 7 hp Goliath Founder. Borgward turned his awareness of the other businesses along with led the development of the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 and in 1939 the title was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from companies he had acquired over the years to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business each time of austerity and rationing. For many purposes nokia's would be run being a single entity, but in a business operated by the man to whom delegation did not come naturally the proliferation of legal entities on the other hand added unhelpful layers of complexity throughout the 1950s and encouraged a broadening of the range which ultimately proved financially unsustainable with the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.Among the 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 most popular model and remained in production for your life of the organization. In 1960 the Borgward P100 had been introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers within the late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (that has been also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties in the German market such since air suspension and programmed transmission, the company had trouble competing out there. While larger companies similar to Opel and VW took selling point of economies of scale as well as kept their prices low to find market share, Borgward's cost structure was even beyond necessary for its size, as it basically operated as four tiny independent companies rather than implemented such basic expense reduction strategies as articulation development and parts sharing between the company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced like a water-cooled boxer with the front wheel drive, but plagued with problems such as water leakage and gearbox mistakes. Lloyd lost money on the car although it was more expensive in comparison with its direct competitors.In 1961, the company was required into liquidation by lenders. Carl Borgward died in July 1963, still insisting the company ended up technically solvent. This proved to be true inside sense that after the creditors were paid fully, there was still 4. 5 million Marks remaining from the business.
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Stories 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 repetitive Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly critical of Carl Borgward's business approach, and included many on the arguments later advanced to go into detail or justify the business's demise. The widest range regarding cars from any company in Germany, produced by three until eventually recently operationally autonomous businesses (Borgward, Goliath and Lloyd) has been supporting a turnover involving only 650 million Scars, placing the overall sales value through the combined Borgward auto businesses only in fifth situation 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 products featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") gave rise to components which too much did not work, broke down or fell apart, resulting in massive payments for pre-delivery remediation and/or post delivery warranty work that found their way back to the company.The December 1960 Spiegel article hasn't been the only serious community criticism targeting Borgward currently: suddenly stridently negative (when more succinct) comments also turned up in the influential mass-market Bild paper and in television stories. Critical media commentaries furthermore appeared concerning large loans to the Borgward Group provided with the local Landesbank.It is apparent which the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses including auto manufacturing use their own expensive machines and tools most efficiently should they use them constantly in full capacity, but the car market in Europe from the 1950s/60s was more seasons than today, with sales diminishing in Winter, then peaking in early summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was above usual, reflecting ambitious growth ideas, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered with the North American dealers inside 1960 (and with the 12, 000 delivered to these) 6, 000 might have being taken back following a slump in Us demand. (Borgward was not the only European auto maker hit with a North American slump sought after for imported cars in the course of 1960. In the same yr two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
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At the end of December 1960 Borgward approached the bank for a further a single million Marks of credit ratings, the loan to be backed by a guarantee from the Bremen local government which initially the Bremen senators decided provide. However, following the flood involving critical press comment the particular senators withdrew their ensure. They now required Carl Borgward to pledge the business 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 several February 1961, thereby averting the bankruptcy of the business.The Bremen Senate likewise insisted on appointing its own nominee as chairman on the company’s supervisory board. The man they decided was Johannes Semler whom reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice towards breadth of Semler’s profession. He had studied law at university and worked initially like a lawyer. The scion of a respected Hamburg political family, in 1945 he got himself been a founding member of the centre-right CSU bash, and was a member of the Bundestag between 1950 and 1953. Despite his Hamburg origins, Semler was by this time based in Munich, with a network of contacts in the Bavarian establishment that most likely included fellow CSU politician and the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler inside a top administrative position inside the Bizone. The appointment of Johannes Semler as the representative of the Bremen senators to be able to chair the Borgward supervisory table would, in retrospect, contribute to the controversy that followed the Borgward individual bankruptcy.
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With 28 July 1961 Semler, as Chairman of your supervisory board joined the directors from the three companies Borgward, Goliath and Lloyd to instigate proceedings for the establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling the business to continue to trade while simultaneously protecting the interests associated with creditors. [16] Two months afterwards, 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 his or her own, never had any intent of allowing the Borgward auto-businesses to be able to survive.
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