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Borgward is usually 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 produced four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's grand son, 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 Display.The origins of Bremen's most significant auto-business get back on 1905 with the place in nearby Varel of the "Hansa Automobilgesellschaft" and the foundation in Bremen itself associated with "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial situation then confronting Germany, the business failed to prosper and with the late 1920s faced chapter 7. For Carl Borgward, already the successful creator from the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a chance greatly to expand the scope of his car business, and he took control of it.

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The very first "automobile" Carl Borgward intended was the 1924 Blitzkarren (super cart), a sort of small three-wheeled van with a couple of hp (1. 5 kW), which was an enormous success already in the market gap it filled. Traders with a small budget bought for delivery. The Reichspost ordered most 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 by now evolved into the still three wheeler timber framed synthetic leather bodied 5 as well as 7 hp Goliath Pioneer. Borgward turned his attention to the other businesses along with led the development of the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 along with 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 some of the brand names from companies he had acquired through the years to found three separate companies: Borgward, Goliath and Lloyd. This was intended to increase the amount of steel allocated to his business at any given time of austerity and rationing. For many purposes the firms would be run being a single entity, but in a business operated by the man to whom delegation didn't come naturally the proliferation of legal entities nevertheless added unhelpful layers of complexity from the 1950s and encouraged a broadening in the range which eventually proved financially unsustainable while using the sales volumes achievable. In 1949 company presented the Borgward Hansa 1500.One of many top engineers at Borgward by 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started out in 1954. The Isabella would become Borgward's most popular model and remained in production with the life of the firm. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a distinct 1500 cc sports racers inside late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (which has been also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties in the German market such because air suspension and computerized transmission, the company had trouble competing out there. While larger companies just like Opel and VW took advantage of economies of scale and also kept their prices low to get market share, Borgward's cost structure was even more than necessary for its measurement, as it basically handled as four tiny independent companies and don't implemented such basic price reduction strategies as combined development and parts sharing involving the company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced being a water-cooled boxer with the front wheel drive, but plagued with problems including water leakage and gearbox snags. Lloyd lost money on the car just about the most was more expensive as compared to its direct competitors.In 1961, the company was compelled into liquidation by creditors. Carl Borgward died within July 1963, still insisting the company was technically solvent. This proved to be true inside sense that after the particular creditors were paid completely, there was still several. 5 million Marks left from the business.

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Accounts of difficulties at Borgward surfaced within the article that appeared within Germany's leading news mag, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly essential of Carl Borgward's business approach, and included many with the arguments later advanced to describe or justify the corporation's demise. The widest range connected with cars from any company in Germany, produced by three till recently operationally autonomous businesses (Borgward, Goliath and Lloyd) seemed to be supporting a turnover involving only 650 million Represents, 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 by using an increasingly manic proliferation connected with new and modified models featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") gave rise to components which many times did not work, broke down or chop down apart, resulting in massive charges for pre-delivery remediation and/or write-up delivery warranty work that found their in the past to the company.The December 1960 Spiegel article was not the only serious open criticism targeting Borgward right now: suddenly stridently negative (if more succinct) comments also resulted in in the influential mass-market Bild paper and in television studies. Critical media commentaries also appeared concerning large loans towards Borgward Group provided with 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 his or her expensive machines and tools most efficiently whenever they use them constantly in full capacity, but the car market in Europe inside the 1950s/60s was more seasons than today, with sales diminishing in Winter, then peaking in early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was higher than usual, reflecting ambitious growth programs, most obviously in respect of the united states 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 with the 12, 000 delivered to them) 6, 000 might have to be taken back following a slump in American demand. (Borgward was not the sole European auto maker hit by a North American slump widely used for imported cars during 1960. In the same yr two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.

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Towards the end of December 1960 Borgward approached the lender for a further a single million Marks of credit rating, the loan to be backed by way of a guarantee from the Bremen local government which initially the Bremen senators agreed to provide. However, following the flood involving critical press comment your senators withdrew their promise. They now required Carl Borgward to pledge the business itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported in the still hostile media, Borgward agreed to the particular senate’s terms on four February 1961, thereby averting the bankruptcy in the business.The Bremen Senate furthermore insisted on appointing its very own nominee as chairman in the company’s supervisory board. The man they decided was Johannes Semler which reports generally describe to be a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice for the breadth of Semler’s profession. He had studied rules at university and worked initially as being a lawyer. The scion of a respected Hamburg political family, in 1945 he received himself been a founding member of the centre-right CSU get together, and was a member of the Bundestag between 1950 and 1953. Despite his Hamburg beginning, Semler was by these times based in Munich, with a network of contacts within the Bavarian establishment that probably included fellow CSU politician and the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a very 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 board would, in retrospect, contribute to the hot debate that followed the Borgward individual bankruptcy.

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With 28 July 1961 Semler, as Chairman of the actual supervisory board joined the directors on the three companies Borgward, Goliath and Lloyd to instigate proceedings for the establishment of a “Vergleichsverfahren”, which would have provided for the court sanctioned scheme of arrangement enabling this company to continue to trade while as well protecting the interests connected with creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath companies were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” get suggested that Semler, for reasons of his or her own, never had any objective of allowing the Borgward auto-businesses for you to survive.

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