Borgward can be an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in the 1960s. The Borgward group produced four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's grandson, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the business's first new car throughout over 40 years, the BX7 at the 2015 International Motor Show.The origins of Bremen's most significant auto-business get back on 1905 with the institution in nearby Varel with the "Hansa Automobilgesellschaft" and the foundation in Bremen itself regarding "Namag", maker of the Lloyd car. These two businesses merged in 1914 to the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economy then confronting Germany, the business failed to prosper and with 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 vehicle business, and he took control from it.
The first "automobile" Carl Borgward developed was the 1924 Blitzkarren (lightning cart), a sort of tiny 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 purchased for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the nevertheless three wheeler timber framed synthetic leather bodied 5 or even 7 hp Goliath Leading. Borgward turned his care about the other businesses and led the development on the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 in addition to in 1939 the brand was shortened to Borgward 2000. The 2000 model was as well as the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used many of the brand names from firms he had acquired in recent times to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase the amount of steel allocated to his business at a time of austerity and rationing. For many purposes the companies would be run like a single entity, but in a business operated by way of a man to whom delegation failed to come naturally the expansion of legal entities nevertheless added unhelpful layers of complexity from the 1950s and encouraged a broadening with the range which in the long run proved financially unsustainable with all the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.One of several top engineers at Borgward through 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's most popular model and remained in production for your life of the business. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers within the late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (that is also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such because air suspension and programmed transmission, the company had trouble competing available. While larger companies just like Opel and VW took benefit from economies of scale and also kept their prices low to realize market share, Borgward's cost structure was even higher than necessary for its measurement, as it basically operated as four tiny independent companies rather than implemented such basic price tag reduction strategies as joint development and parts sharing between your company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced like a water-cooled boxer with front wheel drive, but plagued with problems including water leakage and gearbox glitches. Lloyd lost money on the car just about the most was more expensive than its direct competitors.In 1961, the company was required into liquidation by creditors. Carl Borgward died in July 1963, still insisting the company was technically solvent. This proved to be true inside the sense that after your creditors were paid completely, there was still some. 5 million Marks left over from the business.
Reviews of difficulties at Borgward surfaced within an article that appeared inside Germany's leading news journal, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted with a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly essential of Carl Borgward's company approach, and included many from the arguments later advanced to spell out or justify the businesses demise. The widest range associated with cars from any producer in Germany, produced by three till recently operationally autonomous firms (Borgward, Goliath and Lloyd) ended up being supporting a turnover involving only 650 million Marks, placing the overall sales value from the combined Borgward auto companies only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation regarding new and modified designs featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") offered rise to components which too much did not work, broke down or fell apart, resulting in massive expenses for pre-delivery remediation and/or submit delivery warranty work that found their way back to the company.The December 1960 Spiegel article wasn't the only serious public criticism targeting Borgward currently: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild newspaper and in television stories. Critical media commentaries likewise appeared concerning large loans towards Borgward Group provided with the local Landesbank.It is apparent that this business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses like auto manufacturing use their particular expensive machines and tools most efficiently should they use them constantly from full capacity, but the car market in Europe within the 1950s/60s was more seasons than today, with sales diminishing inside Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars right at the end of 1960 was higher than usual, reflecting ambitious growth programs, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered by the North American dealers inside 1960 (and from the 12, 000 delivered to all of them) 6, 000 might have being taken back following a slump in American demand. (Borgward was not really the only European auto maker hit by way of a North American slump popular for imported cars through 1960. In the same season two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
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At the end of December 1960 Borgward approached the lending company for a further a single million Marks of credit ratings, the loan to be backed by a guarantee from the Bremen local government which initially the Bremen senators decided to provide. However, following the flood of critical press comment your senators withdrew their assure. 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 within a still hostile media, Borgward agreed to the senate’s terms on several February 1961, thereby averting the bankruptcy with the business.The Bremen Senate also insisted on appointing a unique nominee as chairman in the company’s supervisory board. The man they decided to go with was Johannes Semler which reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice towards the breadth of Semler’s career. He had studied regulation at university and worked initially to be a lawyer. The scion of a leading Hamburg political family, in 1945 he had himself been a founding person in the centre-right CSU celebration, 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 as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler inside a top administrative position from the Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators to help chair the Borgward supervisory panel would, in retrospect, contribute to the conflict that followed the Borgward individual bankruptcy.
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About 28 July 1961 Semler, as Chairman of the particular 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 to get a court sanctioned scheme of arrangement enabling the company to continue to trade while while doing so protecting the interests associated with creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of their own, never had any intention of allowing the Borgward auto-businesses to be able to survive.
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