Borgward is an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in the 1960s. The Borgward group created four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has considering that been revived by Carl Borgward's son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the company's first new car with over 40 years, the BX7 at the particular 2015 International Motor Demonstrate.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 associated with "Namag", maker of the Lloyd car. These two businesses merged in 1914 to form the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial crisis then confronting Germany, the business failed to prosper and through the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the scope of his vehicle business, and he took control of the usb ports.
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The first "automobile" Carl Borgward developed was the 1924 Blitzkarren (lightning cart), a sort of small three-wheeled van with 2 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 movie director of Hansa Lloyd AG having had the oppertunity to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 as well as 7 hp Goliath Leading. Borgward turned his care about the other businesses and also led the development in the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 and in 1939 the title was shortened to Borgward 2000. The 2000 model was as well as 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 organizations he had acquired through the years to found three distinct 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 as being a single entity, but in a business operated with a man to whom delegation didn't come naturally the growth of legal entities however added unhelpful layers of complexity throughout the 1950s and encouraged a broadening with the range which eventually proved financially unsustainable using the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of many top engineers at Borgward from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's most favored model and remained in production for the life of the corporation. In 1960 the Borgward P100 was 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 being a successful Formula Two power unit (that has been also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such seeing that air suspension and automated transmission, the company had trouble competing in the market. While larger companies similar to Opel and VW took good thing about economies of scale along with kept their prices low to get market share, Borgward's cost structure was even beyond necessary for its sizing, as it basically controlled as four tiny independent companies rather than implemented such basic charge reduction strategies as articulation development and parts sharing relating to 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 secrets. Lloyd lost money on the car even though it was more expensive as compared to its direct competitors.In 1961, the company was pressured into liquidation by lenders. Carl Borgward died inside July 1963, still insisting the company have been technically solvent. This proved to be true from the sense that after the actual creditors were paid completely, there was still several. 5 million Marks remaining from the business.
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Reports of difficulties at Borgward surfaced in an article that appeared throughout Germany's leading news publication, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s top cover. It was strongly vital of Carl Borgward's organization approach, and included many from the arguments later advanced to explain or justify the business's demise. The widest range associated with cars from any manufacturer in Germany, produced by three until finally recently operationally autonomous organizations (Borgward, Goliath and Lloyd) has been supporting a turnover involving only 650 million Represents, placing the overall sales value through the combined Borgward auto companies only in fifth position among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation of new and modified models featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") presented rise to components which excessively did not work, broke down or fell into apart, resulting in massive costs 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 wasn't the only serious open public 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 magazine and in television accounts. Critical media commentaries in addition appeared concerning large loans to the Borgward Group provided through the local Landesbank.It is apparent which the business was confronting cash-flow difficulties 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 from full capacity, but the car market in Europe inside the 1950s/60s was more temporary than today, with sales diminishing throughout 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 programs, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered through the North American dealers inside 1960 (and in the 12, 000 delivered to these individuals) 6, 000 might have for being taken back following a slump in North american demand. (Borgward was not the only European auto maker hit by way of North American slump popular for imported cars in the course of 1960. In the same season two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
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At the end of December 1960 Borgward approached the lender for a further a single million Marks of credit, the loan to be backed by a guarantee from the Bremen local government which initially the Bremen senators opted for provide. However, following the flood regarding critical press comment the senators withdrew their guarantee. 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 very still hostile media, Borgward agreed to the particular senate’s terms on 4 February 1961, thereby averting the bankruptcy in the business.The Bremen Senate in addition insisted on appointing a nominee as chairman on the company’s supervisory board. The man they chose was Johannes Semler who reports generally describe to be a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated directly into English, does less than full justice to the breadth of Semler’s profession. He had studied legislation at university and worked initially like a lawyer. The scion of a top Hamburg political family, in 1945 he received himself been a founding person in the centre-right CSU bash, and was a person in the Bundestag between 1950 and also 1953. Despite his Hamburg roots, Semler was by these times based in Munich, with a network of contacts inside the Bavarian establishment that most likely included fellow CSU politician and also the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position in the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators to be able to chair the Borgward supervisory panel would, in retrospect, contribute to the conflict that followed the Borgward bankruptcy.
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On 28 July 1961 Semler, as Chairman of this 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 organization to continue to trade while at the same time protecting the interests of creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of his very own, never had any goal of allowing the Borgward auto-businesses to help survive.
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