Borgward is an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in this 1960s. The Borgward group created four brands of autos: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grandson, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the business's first new car inside over 40 years, the BX7 at the particular 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business resume 1905 with the place in nearby Varel from the "Hansa Automobilgesellschaft" and the walls in Bremen itself connected with "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial crisis 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 chance greatly to expand this scope of his car business, and he took control of the usb ports.
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The very first "automobile" Carl Borgward created was the 1924 Blitzkarren (lightning cart), a sort of tiny three-wheeled van with only two 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 many of them 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 right now evolved into the nonetheless three wheeler timber presented synthetic leather bodied 5 or perhaps 7 hp Goliath Master. Borgward turned his focus on the other businesses as well as led the development on 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 and then the Borgward 2300that always been in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from corporations he had acquired in the past to found three different companies: Borgward, Goliath and Lloyd. This was intended to increase the amount of steel allocated to his business each time of austerity and rationing. For many purposes nokia's would be run as being a single entity, but in a business operated by a man to whom delegation wouldn't come naturally the spreading of legal entities nonetheless added unhelpful layers of complexity from the 1950s and encouraged a broadening of the range which in the end proved financially unsustainable with all the sales volumes achievable. In 1949 company introduced the Borgward Hansa 1500.One of the top engineers at Borgward from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella began in 1954. The Isabella would become Borgward's most favored model and remained in production for your life of the corporation. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a distinct 1500 cc sports racers in the late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (that was also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such since air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies including Opel and VW took advantage of economies of scale and kept their prices low to gain market share, Borgward's cost structure was even higher than necessary for its dimension, as it basically controlled as four tiny independent companies rather than implemented such basic expense reduction strategies as shared development and parts sharing between the company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced as being a water-cooled boxer with front wheel drive, but plagued with problems including water leakage and gearbox mistakes. Lloyd lost money on the car although it was more expensive than its direct competitors.In 1961, the company was pushed into liquidation by loan companies. Carl Borgward died in July 1963, still insisting the company were being technically solvent. This proved to be true within the sense that after the actual creditors were paid fully, there was still four. 5 million Marks left from the business.
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Studies of difficulties at Borgward surfaced within an 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 by means of a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly vital of Carl Borgward's organization approach, and included many in the arguments later advanced to spell out or justify the business's demise. The widest range associated with cars from any producer in Germany, produced by three till recently operationally autonomous organizations (Borgward, Goliath and Lloyd) was supporting a turnover of only 650 million Marks, placing the overall sales value on the combined Borgward auto firms only in fifth place among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation regarding new and modified models featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") provided rise to components which too much did not work, broke down or fell into apart, resulting in massive charges for pre-delivery remediation and/or publish delivery warranty work that found their in the past to the company.The December 1960 Spiegel article was not the only serious open public criticism targeting Borgward at this time: suddenly stridently negative (if more succinct) comments also turned up in the influential mass-market Bild newspaper and in television accounts. Critical media commentaries additionally appeared concerning large loans towards Borgward Group provided by the local Landesbank.It is apparent that the business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses such as auto manufacturing use his or her 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 seasons than today, with sales diminishing with Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars by the end of 1960 was more than 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 because of the North American dealers throughout 1960 (and of the 12, 000 delivered to these people) 6, 000 might have being taken back following a slump in United states demand. (Borgward was not the only real European auto maker hit by a North American slump widely used 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 bank for a further just one million Marks of credit ratings, the loan to be backed with a guarantee from the Bremen local government which initially the Bremen senators decided provide. However, following the flood of critical press comment the actual senators withdrew their assurance. They now required Carl Borgward to pledge the corporation 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 this senate’s terms on some February 1961, thereby averting the bankruptcy in 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 which reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice to the breadth of Semler’s occupation. He had studied legislation at university and worked initially to be a lawyer. The scion of a top Hamburg political family, in 1945 he received himself been a founding member of the centre-right CSU bash, and was a member of the Bundestag between 1950 along with 1953. Despite his Hamburg roots, Semler was by now based in Munich, with a network of contacts within the Bavarian establishment that almost certainly included fellow CSU politician and the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a very top administrative position inside Bizone. The appointment of Johannes Semler as the representative of the Bremen senators to chair the Borgward supervisory table would, in retrospect, contribute to the debate that followed the Borgward chapter 7.
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In 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 a court sanctioned scheme of arrangement enabling the business to continue to trade while at the same time protecting the interests associated with creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of his or her own, never had any goal of allowing the Borgward auto-businesses to help survive.
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