Borgward is an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in the particular 1960s. The Borgward group generated four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has considering that been revived by Carl Borgward's grand son, Christian Borgward, together with his lover Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the company's first new car inside over 40 years, the BX7 at the 2015 International Motor Show.The origins of Bremen's most significant auto-business get back to 1905 with the establishment in nearby Varel in the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself of "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economic situation then confronting Germany, the business failed to prosper and by the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the actual scope of his car business, and he took control of it.
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The 1st "automobile" Carl Borgward made was the 1924 Blitzkarren (turbo cart), a sort of tiny three-wheeled van with only two hp (1. 5 kW), which was an enormous success already in the market gap it filled. Traders with a small budget got it for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had nowadays evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or even 7 hp Goliath Leader. Borgward turned his care about the other businesses along with led the development of the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 and also in 1939 the label was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used a few of the brand names from firms he had acquired over time to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase how much steel allocated to his business at any given time of austerity and rationing. For many purposes the firms would be run as being a single entity, but in a business operated with a man to whom delegation did not come naturally the growth of legal entities nevertheless added unhelpful layers of complexity throughout the 1950s and encouraged a broadening from the range which ultimately proved financially unsustainable while using sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.On the list of top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's most widely used 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 line of 1500 cc sports racers in the late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (that is also used by a number of F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such while air suspension and computerized transmission, the company had trouble competing in the market. While larger companies such as 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 more than necessary for its sizing, as it basically operated as four tiny independent companies rather than implemented such basic cost reduction strategies as combined development and parts sharing between your company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced to be a water-cooled boxer with top wheel drive, but plagued with problems for example water leakage and gearbox snags. Lloyd lost money on the car though it was more expensive as compared to its direct competitors.In 1961, the company was compelled into liquidation by lenders. Carl Borgward died with July 1963, still insisting the company were being technically solvent. This proved to be true inside the sense that after the actual creditors were paid entirely, there was still 5. 5 million Marks left from the business.
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Studies of difficulties at Borgward surfaced in an article that appeared in Germany's leading news mag, “Der Spiegel” on fourteen 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 entry cover. It was strongly crucial of Carl Borgward's organization approach, and included many from the arguments later advanced to describe or justify the corporation's demise. The widest range of cars from any supplier in Germany, produced by three until recently operationally autonomous businesses (Borgward, Goliath and Lloyd) has been supporting a turnover connected with only 650 million Signifies, placing the overall sales value from the combined Borgward auto organizations only in fifth position among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence by using an increasingly manic proliferation connected with new and modified types featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") afforded rise to components which too often did not work, broke down or dropped apart, resulting in massive bills for pre-delivery remediation and/or article 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 presently: suddenly stridently negative (if more succinct) comments also resulted in in the influential mass-market Bild classifieds and in television accounts. Critical media commentaries likewise appeared concerning large loans towards Borgward Group provided through the local Landesbank.It is apparent that this business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses such as auto manufacturing use their particular expensive machines and tools most efficiently when they use them constantly on full capacity, but the car market in Europe from the 1950s/60s was more in season than today, with sales diminishing within Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was higher than usual, reflecting ambitious growth plans, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered through the North American dealers with 1960 (and of the 12, 000 delivered to all of them) 6, 000 might have to become taken back following a slump in United states demand. (Borgward was not the only European auto maker hit by way of a North American slump sought after for imported cars during 1960. In the same year two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in Nyc were overcrowded with unsold Dauphines.
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Towards the end of December 1960 Borgward approached the lender for a further 1 million Marks of credit, the loan to be backed by a guarantee from the Bremen regional government which initially the Bremen senators agreed to provide. However, following the flood regarding critical press comment the actual senators withdrew their assurance. They now required Carl Borgward to pledge this company 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 the actual senate’s terms on several February 1961, thereby averting the bankruptcy of the business.The Bremen Senate furthermore insisted on appointing a unique nominee as chairman from the company’s supervisory board. The man they select was Johannes Semler which reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated directly into English, does less than full justice towards breadth of Semler’s occupation. He had studied legislation at university and worked initially like a lawyer. The scion of a top Hamburg political family, in 1945 he got himself been a founding member of the centre-right CSU get together, and was a member of the Bundestag between 1950 as well as 1953. Despite his Hamburg beginnings, Semler was by on this occasion based in Munich, with a network of contacts within the Bavarian establishment that most likely included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position within the Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators to help chair the Borgward supervisory aboard would, in retrospect, contribute to the controversy that followed the Borgward individual bankruptcy.
About 28 July 1961 Semler, as Chairman of the supervisory board joined the directors on the three companies Borgward, Goliath and Lloyd to instigate proceedings for that establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling the business to continue to trade while simultaneously protecting the interests associated with creditors. [16] Two months later on, 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 her own, never had any purpose of allowing the Borgward auto-businesses to help survive.
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