Borgward is usually an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in the particular 1960s. The Borgward group generated four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has due to the fact been revived by Carl Borgward's grand son, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the businesses first new car with over 40 years, the BX7 at your 2015 International Motor Display.The origins of Bremen's most significant auto-business return to 1905 with the place in nearby Varel of the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself of "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 in order to create 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 personal bankruptcy. For Carl Borgward, already the successful creator from the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the possibility greatly to expand the scope of his automobile business, and he took control of it.
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The initial "automobile" Carl Borgward designed was the 1924 Blitzkarren (lightning cart), a sort of tiny three-wheeled van with 2 hp (1. 5 kW), which was an enormous success on the market gap it filled. Traders with a small budget ordered for delivery. The Reichspost ordered most of them for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the nonetheless three wheeler timber presented synthetic leather bodied 5 or 7 hp Goliath Pioneer. Borgward turned his focus on the other businesses and also led the development on the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 along with in 1939 the title was shortened to Borgward 2000. The 2000 model was as well as the Borgward 2300that always been in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from companies he had acquired over the years to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business at a time of austerity and rationing. For many purposes the companies would be run as being a single entity, but in a business operated by a man to whom delegation did not come naturally the expansion of legal entities on the other hand added unhelpful layers of complexity with the 1950s and encouraged a broadening of 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 the top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started out in 1954. The Isabella would become Borgward's most in-demand model and remained in production with the life of the company. In 1960 the Borgward P100 had been introduced, equipped with pneumatic suspension.Borgward introduced a distinctive 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 (which has been also used by a number of 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 in the marketplace. While larger companies such as Opel and VW took advantage of economies of scale as well as kept their prices low to get market share, Borgward's cost structure was even beyond necessary for its dimension, as it basically run as four tiny independent companies and don't implemented such basic price tag reduction strategies as shared development and parts sharing between company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced as a water-cooled boxer with entry wheel drive, but plagued with problems for instance water leakage and gearbox mistakes. Lloyd lost money on the car even though it was more expensive in comparison with its direct competitors.In 1961, the company was pushed into liquidation by collectors. Carl Borgward died inside July 1963, still insisting the company ended up technically solvent. This proved to be true within the sense that after this creditors were paid entirely, there was still some. 5 million Marks left over from the business.
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Stories of difficulties at Borgward surfaced in an article that appeared inside Germany's leading news newspaper, “Der Spiegel” on 14 December 1960”. The very long, detailed, and in places repetitive Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s entrance cover. It was strongly critical of Carl Borgward's enterprise approach, and included many from the arguments later advanced to explain or justify the company's demise. The widest range connected with cars from any manufacturer in Germany, produced by three until recently operationally autonomous firms (Borgward, Goliath and Lloyd) was supporting a turnover regarding only 650 million Marks, placing the overall sales value on the combined Borgward auto businesses only in fifth placement among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation of new and modified types featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") presented rise to components which too often did not work, broke down or droped apart, resulting in massive bills for pre-delivery remediation and/or post delivery warranty work that found their long ago to the company.The December 1960 Spiegel article wasn't the only serious public criticism targeting Borgward at the moment: suddenly stridently negative (in the event more succinct) comments also resulted in in the influential mass-market Bild newspapers and in television stories. Critical media commentaries also appeared concerning large loans for the Borgward Group provided because of the local Landesbank.It is apparent that the business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses including auto manufacturing use their own expensive machines and tools most efficiently when they use them constantly from full capacity, but the car market in Europe inside 1950s/60s was more periodic 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 beyond usual, reflecting ambitious growth plans, 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 inside 1960 (and in the 12, 000 delivered to all of them) 6, 000 might have to become taken back following a slump in North american demand. (Borgward was not the only European auto maker hit by the North American slump successful for imported cars while in 1960. In the same yr two ships carrying Renault Dauphines were turned back mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached your banker for a further one million Marks of credit history, the loan to be backed by way of guarantee from the Bremen regional government which initially the Bremen senators consented to provide. However, following the flood of critical press comment the senators withdrew their ensure. 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 the still hostile media, Borgward agreed to your senate’s terms on several February 1961, thereby averting the bankruptcy with the business.The Bremen Senate additionally insisted on appointing a unique nominee as chairman of the company’s supervisory board. The man they select was Johannes Semler to whom reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice on the breadth of Semler’s job. He had studied law at university and worked initially being a lawyer. The scion of a number one Hamburg political family, in 1945 he received himself been a founding person in the centre-right CSU celebration, and was a person in the Bundestag between 1950 and 1953. Despite his Hamburg roots, Semler was by this time around based in Munich, with a network of contacts from the Bavarian establishment that probably 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 for you to chair the Borgward supervisory aboard would, in retrospect, contribute to the controversy that followed the Borgward chapter 7.
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In 28 July 1961 Semler, as Chairman of your supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings for the establishment of a “Vergleichsverfahren”, which would have provided for just a court sanctioned scheme of arrangement enabling the business to continue to trade while while doing so protecting the interests of creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November with 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 survive.
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