Borgward is definitely an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in your 1960s. The Borgward group generated four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has considering that been revived by Carl Borgward's grand son, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the corporation's first new car in over 40 years, the BX7 at the 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business go back to 1905 with the place in nearby Varel on the "Hansa Automobilgesellschaft" and the foundation in Bremen itself involving "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 financial status then confronting Germany, the business failed to prosper and with the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand the scope of his auto business, and he took control of it.
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The initial "automobile" Carl Borgward created was the 1924 Blitzkarren (super cart), a sort of very small three-wheeled van with only two hp (1. 5 kW), which was an enormous success out there gap it filled. Traders with a small budget ordered for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the nevertheless three wheeler timber framed synthetic leather bodied 5 or maybe 7 hp Goliath Leading. Borgward turned his care about the other businesses along with led the development from 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 followed 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 businesses he had acquired in recent times to found three distinct companies: Borgward, Goliath and Lloyd. This was intended to increase how much steel allocated to his business each time of austerity and rationing. For many purposes the companies would be run like a single entity, but in a business operated with a man to whom delegation wouldn't come naturally the expansion of legal entities nevertheless added unhelpful layers of complexity from the 1950s and encouraged a broadening in the range which ultimately proved financially unsustainable while using sales volumes achievable. In 1949 company introduced 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 popular model and remained in production for that life of the firm. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers in the late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (that was also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such while air suspension and automated transmission, the company had trouble competing available. While larger companies similar to Opel and VW took good thing about economies of scale as well as kept their prices low to gain market share, Borgward's cost structure was even more than necessary for its dimension, as it basically operated as four tiny independent companies and do not implemented such basic expense reduction strategies as combined development and parts sharing between company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced as being a water-cooled boxer with 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 compared to its direct competitors.In 1961, the company was compelled into liquidation by creditors. Carl Borgward died with July 1963, still insisting the company have been technically solvent. This proved to be true in the sense that after your creditors were paid completely, there was still four. 5 million Marks left from the business.
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Accounts of difficulties at Borgward surfaced within an article that appeared throughout Germany's leading news newspaper, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly important of Carl Borgward's organization approach, and included many with the arguments later advanced to describe or justify the corporation's demise. The widest range regarding cars from any company in Germany, produced by three right up until recently operationally autonomous companies (Borgward, Goliath and Lloyd) had been supporting a turnover involving only 650 million Grades, placing the overall sales value from the combined Borgward auto corporations only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation connected with new and modified types featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") presented rise to components which too often did not work, broke down or fell apart, resulting in massive bills for pre-delivery remediation and/or write-up delivery warranty work that found their made use of to the company.The December 1960 Spiegel article has not been the only serious open public criticism targeting Borgward right now: suddenly stridently negative (if more succinct) comments also turned up in the influential mass-market Bild newspapers and in television studies. Critical media commentaries likewise appeared concerning large loans towards Borgward Group provided from the local Landesbank.It is apparent the business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses like auto manufacturing use their own expensive machines and tools most efficiently when they use them constantly on full capacity, but the car market in Europe inside 1950s/60s was more in season than today, with sales diminishing in Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars towards the end of 1960 was above usual, reflecting ambitious growth programs, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered with the North American dealers within 1960 (and from the 12, 000 delivered to these) 6, 000 might have for being taken back following a slump in United states demand. (Borgward was not really the only European auto maker hit with a North American slump sought after for imported cars during 1960. In the same 12 months two ships carrying Renault Dauphines were turned last mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
By the end of December 1960 Borgward approached the lender for a further one particular million Marks of credit rating, the loan to be backed by way of a guarantee from the Bremen regional government which initially the Bremen senators agreed to provide. However, following the flood involving critical press comment this senators withdrew their assurance. They now required Carl Borgward to pledge the organization itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported in a still hostile media, Borgward agreed to this senate’s terms on 4 February 1961, thereby averting the bankruptcy from the business.The Bremen Senate likewise insisted on appointing a unique nominee as chairman in the company’s supervisory board. The man they select was Johannes Semler who reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice to the breadth of Semler’s occupation. He had studied legislation at university and worked initially being a lawyer. The scion of a number one Hamburg political family, in 1945 he had himself been a founding member of the centre-right CSU get together, and was a person in the Bundestag between 1950 and 1953. Despite his Hamburg origins, Semler was by now based in Munich, with a network of contacts from the Bavarian establishment that possibly included fellow CSU politician plus the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position within the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators for you to chair the Borgward supervisory panel would, in retrospect, contribute to the dispute that followed the Borgward a bankruptcy proceeding.
In 28 July 1961 Semler, as Chairman of this supervisory board joined the directors with 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 as well protecting the interests of creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of his very own, never had any intention of allowing the Borgward auto-businesses in order to survive.
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