Borgward is an automobile manufacturer originally created by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in the 1960s. The Borgward group made four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's son, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from China investment, and unveiled the corporation's first new car within over 40 years, the BX7 at the 2015 International Motor Display.The origins of Bremen's most significant auto-business resume 1905 with the institution in nearby Varel of the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself regarding "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial situation then confronting Germany, the business failed to prosper and by the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand this scope of his vehicle business, and he took control of it.
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The primary "automobile" Carl Borgward created was the 1924 Blitzkarren (super cart), a sort of little three-wheeled van with only two hp (1. 5 kW), which was an enormous success on the market gap it filled. Traders with a small budget got it for delivery. The Reichspost ordered most of them for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the still three wheeler timber framed synthetic leather bodied 5 or perhaps 7 hp Goliath Leader. Borgward turned his focus on the other businesses along with led the development in the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 as well as in 1939 the label was shortened to Borgward 2000. The 2000 model was then the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from businesses he had acquired through the years to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the number of steel allocated to his business during a period of austerity and rationing. For many purposes the businesses would be run to be a single entity, but in a business operated by way of man to whom delegation would not come naturally the proliferation of legal entities however added unhelpful layers of complexity over the 1950s and encouraged a broadening on the range which eventually proved financially unsustainable using the sales volumes achievable. In 1949 company shown 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 commenced in 1954. The Isabella would become Borgward's most in-demand model and remained in production to the life of the firm. In 1960 the Borgward P100 seemed to be 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 is also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such because air suspension and automatic transmission, the company had trouble competing out there. While larger companies such as Opel and VW took good thing about economies of scale and kept their prices low to realize market share, Borgward's cost structure was even greater than necessary for its size, as it basically run as four tiny independent companies and don't implemented such basic price tag reduction strategies as joint development and parts sharing between your company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced being a water-cooled boxer with entrance wheel drive, but plagued with problems for example water leakage and gearbox errors. Lloyd lost money on the car community . was more expensive as compared to its direct competitors.In 1961, the company was pushed into liquidation by creditors. Carl Borgward died throughout July 1963, still insisting the company was technically solvent. This proved to be true from the sense that after the particular creditors were paid in full, there was still 5. 5 million Marks left over from the business.
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Reports of difficulties at Borgward surfaced in a article that appeared in Germany's leading news magazine, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted by means of a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly critical of Carl Borgward's company approach, and included many with the arguments later advanced to describe or justify the businesses demise. The widest range regarding cars from any supplier in Germany, produced by three until finally recently operationally autonomous corporations (Borgward, Goliath and Lloyd) ended up being supporting a turnover associated with only 650 million Marks, placing the overall sales value on the combined Borgward auto businesses only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence by using an increasingly manic proliferation involving 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 dropped apart, resulting in massive payments for pre-delivery remediation and/or write-up delivery warranty work that found their long ago to the company.The December 1960 Spiegel article had not been the only serious general public criticism targeting Borgward presently: suddenly stridently negative (in case more succinct) comments also resulted in in the influential mass-market Bild newspapers and in television reports. Critical media commentaries additionally appeared concerning large loans for the Borgward Group provided by the local Landesbank.It is apparent the business was confronting cash-flow difficulties by the end of 1960. Capital intensive businesses for example auto manufacturing use their expensive machines and tools most efficiently as long as they use them constantly at full capacity, but the car market in Europe in the 1950s/60s was more temporary than today, with sales diminishing within Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars towards the end of 1960 was beyond usual, reflecting ambitious growth strategies, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered with the North American dealers in 1960 (and with the 12, 000 delivered to these) 6, 000 might have for being taken back following a slump in North american demand. (Borgward was not the one European auto maker hit with a North American slump successful for imported cars through 1960. In the same yr two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
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Right at the end of December 1960 Borgward approached the lending company for a further one particular million Marks of credit score, the loan to be backed by way of a guarantee from the Bremen local government which initially the Bremen senators opted for provide. However, following the flood associated with critical press comment this senators withdrew their assurance. They now required Carl Borgward to pledge this company 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 your senate’s terms on some February 1961, thereby averting the bankruptcy of the business.The Bremen Senate additionally insisted on appointing its nominee as chairman with the company’s supervisory board. The man they decided to go with was Johannes Semler with whom reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice to the breadth of Semler’s job. He had studied rules at university and worked initially being a lawyer. The scion of a respected Hamburg political family, in 1945 he experienced himself been a founding member of the centre-right CSU bash, and was a member of the Bundestag between 1950 in addition to 1953. Despite his Hamburg beginnings, Semler was by these times based in Munich, with a network of contacts inside Bavarian establishment that likely included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a very top administrative position from the Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators in order to chair the Borgward supervisory mother board would, in retrospect, contribute to the dispute that followed the Borgward personal bankruptcy.
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About 28 July 1961 Semler, as Chairman of the particular supervisory board joined the directors on the three companies Borgward, Goliath and Lloyd to instigate proceedings with the establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling the business to continue to trade while concurrently protecting the interests regarding 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 their own, never had any purpose of allowing the Borgward auto-businesses in order to survive.
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