Borgward is surely an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in this 1960s. The Borgward group made four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the corporation's first new car inside over 40 years, the BX7 at this 2015 International Motor Indicate.The origins of Bremen's most significant auto-business return to 1905 with the establishment in nearby Varel of the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself of "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 economic situation then confronting Germany, the business failed to prosper and from the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the scope of his automobile business, and he took control than it.
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The primary "automobile" Carl Borgward made was the 1924 Blitzkarren (turbo cart), a sort of little three-wheeled van with 3 hp (1. 5 kW), which was an enormous success in the market gap it filled. Traders with a small budget ordered for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had nowadays evolved into the however three wheeler timber presented synthetic leather bodied 5 or 7 hp Goliath Founder. Borgward turned his focus on the other businesses and led the development with the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 along with in 1939 the name 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 some of the brand names from corporations he had acquired in the past to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business each time of austerity and rationing. For many purposes the lenders would be run to be a single entity, but in a business operated by the man to whom delegation would 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 while using the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of several top engineers at Borgward from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started in 1954. The Isabella would become Borgward's most in-demand model and remained in production with the life of the corporation. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a distinct 1500 cc sports racers in the late 1950s, with the 16-valve engine from these being a successful Formula Two power unit (which was also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such while air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies similar to Opel and VW took benefit of economies of scale along with kept their prices low to gain market share, Borgward's cost structure was even beyond necessary for its dimension, as it basically handled as four tiny independent companies rather than implemented such basic price 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 the front wheel drive, but plagued with problems for instance water leakage and gearbox snags. Lloyd lost money on the car just about the most was more expensive than its direct competitors.In 1961, the company was compelled into liquidation by loan companies. Carl Borgward died throughout July 1963, still insisting the company ended up technically solvent. This proved to be true from the sense that after the creditors were paid completely, there was still several. 5 million Marks left over from the business.
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Stories of difficulties at Borgward surfaced within the article that appeared with Germany's leading news newspaper, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places recurring 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 spell out or justify the company's demise. The widest range associated with cars from any manufacturer in Germany, produced by three until finally recently operationally autonomous companies (Borgward, Goliath and Lloyd) seemed to be supporting a turnover involving only 650 million Scars, placing the overall sales value from your combined Borgward auto organizations only in fifth position 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 inventions ("fast manisch[e] Konstruierwut") gave rise to components which all too often did not work, broke down or fell into apart, resulting in massive bills for pre-delivery remediation and/or post 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 right now: suddenly stridently negative (if more succinct) comments also resulted in in the influential mass-market Bild magazine and in television stories. Critical media commentaries in addition appeared concerning large loans towards the Borgward Group provided because of the local Landesbank.It is apparent which the business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses for instance auto manufacturing use the expensive machines and tools most efficiently as long as they use them constantly from full capacity, but the car market in Europe inside 1950s/60s was more in season than today, with sales diminishing inside Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was more than usual, reflecting ambitious growth ideas, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered through the North American dealers with 1960 (and of the 12, 000 delivered to them) 6, 000 might have to be taken back following a slump in United states demand. (Borgward was not really the only European auto maker hit by a North American slump popular for imported cars in the course of 1960. In the same season two ships carrying Renault Dauphines were turned last mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
At the conclusion of December 1960 Borgward approached the lender for a further one particular million Marks of credit, the loan to be backed by a guarantee from the Bremen regional 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 organization itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported within a still hostile media, Borgward agreed to this senate’s terms on several February 1961, thereby averting the bankruptcy of the business.The Bremen Senate additionally insisted on appointing its very own nominee as chairman with the company’s supervisory board. The man they selected was Johannes Semler which reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated straight into English, does less than full justice on the breadth of Semler’s career. He had studied legislation at university and worked initially to be a lawyer. The scion of a number one Hamburg political family, in 1945 he experienced himself been a founding member of the centre-right CSU party, and was a member of the Bundestag between 1950 in addition to 1953. Despite his Hamburg roots, Semler was by this time based in Munich, with a network of contacts in the Bavarian establishment that probably included fellow CSU politician plus the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position in the Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators to help chair the Borgward supervisory table would, in retrospect, contribute to the dispute that followed the Borgward a bankruptcy proceeding.
On 28 July 1961 Semler, as Chairman of your supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided for the court sanctioned scheme of arrangement enabling the organization to continue to trade while at the same time protecting the interests connected with creditors. [16] Two months later on, however, in September 1961, the Borgward and Goliath companies were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of her own, never had any objective of allowing the Borgward auto-businesses to survive.
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