Borgward is an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in this 1960s. The Borgward group made four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grand son, Christian Borgward, together with his lover Karlheinz L. Knöss, with assistance from China investment, and unveiled the businesses first new car throughout over 40 years, the BX7 at this 2015 International Motor Display.The origins of Bremen's most significant auto-business resume 1905 with the place in nearby Varel on the "Hansa Automobilgesellschaft" and the muse in Bremen itself connected with "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial status then confronting Germany, the business failed to prosper and with the late 1920s faced chapter 7. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand the particular scope of his auto business, and he took control of the usb ports.
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The primary "automobile" Carl Borgward created was the 1924 Blitzkarren (lightning cart), a sort of very small three-wheeled van with 3 hp (1. 5 kW), which was an enormous success already in the market gap it filled. Traders with a small budget bought for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having had the oppertunity to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had nowadays evolved into the still three wheeler timber framed synthetic leather bodied 5 or even 7 hp Goliath Leading. Borgward turned his focus on the other businesses and led the development from the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 as well as in 1939 the label was shortened to Borgward 2000. The 2000 model was as well as the Borgward 2300that remained 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 time to found three separate companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business at the same time of austerity and rationing. For many purposes the lenders would be run like a single entity, but in a business operated by way of man to whom delegation didn't come naturally the growth of legal entities even so added unhelpful layers of complexity with the 1950s and encouraged a broadening with the range which in the end proved financially unsustainable using the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of many top engineers at Borgward through 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella began in 1954. The Isabella would become Borgward's most in-demand model and remained in production to the life of the business. In 1960 the Borgward P100 was introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these to become 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 while air suspension and programmed transmission, the company had trouble competing in the market. While larger companies like Opel and VW took selling point of economies of scale in addition to kept their prices low to find market share, Borgward's cost structure was even more than necessary for its dimension, as it basically run as four tiny independent companies and don't implemented such basic price tag reduction strategies as combined development and parts sharing between your company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced being a water-cooled boxer with front wheel drive, but plagued with problems like water leakage and gearbox secrets. Lloyd lost money on the car even though it was more expensive than its direct competitors.In 1961, the company was forced into liquidation by credit card companies. Carl Borgward died with July 1963, still insisting the company was technically solvent. This proved to be true inside sense that after the actual creditors were paid 100 %, there was still 4. 5 million Marks left over from the business.
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Reviews of difficulties at Borgward surfaced in a article that appeared within Germany's leading news mag, “Der Spiegel” on 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 front cover. It was strongly essential of Carl Borgward's business approach, and included many from the arguments later advanced to explain or justify the corporation's demise. The widest range regarding cars from any supplier in Germany, produced by three until eventually recently operationally autonomous organizations (Borgward, Goliath and Lloyd) had been supporting a turnover regarding only 650 million Represents, placing the overall sales value from your combined Borgward auto companies only in fifth place among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation connected with new and modified versions featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") afforded rise to components which too often did not work, broke down or chop down apart, resulting in massive bills for pre-delivery remediation and/or write-up delivery warranty work that found their sources that are to the company.The December 1960 Spiegel article has not been the only serious open criticism targeting Borgward at the moment: suddenly stridently negative (in the event that more succinct) comments also resulted in in the influential mass-market Bild newspapers and in television accounts. Critical media commentaries additionally appeared concerning large loans on the Borgward Group provided because of the local Landesbank.It is apparent which the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses for example auto manufacturing use the expensive machines and tools most efficiently should they use them constantly from full capacity, but the car market in Europe inside 1950s/60s was more temporary than today, with sales diminishing with Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was more than usual, reflecting ambitious growth plans, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered with the North American dealers inside 1960 (and on the 12, 000 delivered to these people) 6, 000 might have for being taken back following a slump in Us demand. (Borgward was not the one European auto maker hit with a North American slump successful for imported cars throughout 1960. In the same calendar year two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in Nyc were overcrowded with unsold Dauphines.
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Towards the end of December 1960 Borgward approached your banker for a further 1 million Marks of credit score, the loan to be backed by the guarantee from the Bremen regional government which initially the Bremen senators agreed to provide. However, following the flood associated with critical press comment the senators withdrew their promise. 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 a very still hostile media, Borgward agreed to the senate’s terms on 5 February 1961, thereby averting the bankruptcy with the business.The Bremen Senate also insisted on appointing its nominee as chairman on the company’s supervisory board. The man they decided was Johannes Semler who reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice towards breadth of Semler’s career. He had studied regulation at university and worked initially being a lawyer. The scion of a leading Hamburg political family, in 1945 he acquired himself been a founding person in the centre-right CSU get together, and was a member of the Bundestag between 1950 along with 1953. Despite his Hamburg roots, Semler was by this time around based in Munich, with a network of contacts from the Bavarian establishment that likely included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position within the Bizone. The appointment of Johannes Semler as the representative of the Bremen senators in order to chair the Borgward supervisory mother board would, in retrospect, contribute to the dispute that followed the Borgward chapter 7.
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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 with the establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling this company to continue to trade while as well protecting the interests regarding creditors. [16] Two months later on, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of her own, never had any purpose of allowing the Borgward auto-businesses to be able to survive.
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