Borgward is an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen inside Germany, ceased operations in this 1960s. The Borgward group produced four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has considering that been revived by Carl Borgward's grandson, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Oriental investment, and unveiled the businesses first new car within over 40 years, the BX7 at the 2015 International Motor Indicate.The origins of Bremen's most significant auto-business get back to 1905 with the establishment in nearby Varel on the "Hansa Automobilgesellschaft" and the muse in Bremen itself connected with "Namag", maker of the Lloyd car. These two businesses merged in 1914 in order 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 from the late 1920s faced a bankruptcy proceeding. For Carl Borgward, already the successful creator from the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the possibility greatly to expand this scope of his automobile business, and he took control of it.
The initial "automobile" Carl Borgward developed was the 1924 Blitzkarren (super cart), a sort of small three-wheeled van with 2 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 many for postal service.In 1929, Borgward became the home of Hansa Lloyd AG having had the oppertunity to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the however three wheeler timber presented synthetic leather bodied 5 as well as 7 hp Goliath Leader. Borgward turned his care about the other businesses along with led the development in the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 along with in 1939 the brand 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 many of the brand names from businesses 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 each time of austerity and rationing. For many purposes nokia's would be run as being a single entity, but in a business operated by way of man to whom delegation failed to come naturally the spreading of legal entities on the other hand added unhelpful layers of complexity over the 1950s and encouraged a broadening on the range which eventually proved financially unsustainable while using the sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.One of many top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella began in 1954. The Isabella would become Borgward's most in-demand model and remained in production with the life of the business. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers from the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (which has been also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such as air suspension and intelligent transmission, the company had trouble competing available. While larger companies including Opel and VW took benefit from economies of scale as well as kept their prices low to find market share, Borgward's cost structure was even greater than necessary for its dimension, as it basically handled as four tiny independent companies and not implemented such basic expense reduction strategies as mutual development and parts sharing between the company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced like a water-cooled boxer with entrance wheel drive, but plagued with problems like water leakage and gearbox glitches. Lloyd lost money on the car even though it was more expensive in comparison with its direct competitors.In 1961, the company was pressured into liquidation by collectors. Carl Borgward died in July 1963, still insisting the company have been technically solvent. This proved to be true inside the sense that after the actual creditors were paid in full, there was still some. 5 million Marks left over from the business.
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Reports of difficulties at Borgward surfaced in the article that appeared with Germany's leading news publication, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly important of Carl Borgward's enterprise approach, and included many in the arguments later advanced to spell out or justify the company's demise. The widest range associated with cars from any producer in Germany, produced by three until eventually recently operationally autonomous companies (Borgward, Goliath and Lloyd) had been supporting a turnover associated with only 650 million Scars, placing the overall sales value from the combined Borgward auto businesses only in fifth place among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation associated with new and modified designs featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") offered rise to components which excessively did not work, broke down or fell into 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 this time: suddenly stridently negative (when more succinct) comments also turned up in the influential mass-market Bild newspapers and in television accounts. Critical media commentaries additionally appeared concerning large loans towards Borgward Group provided by the local Landesbank.It is apparent that this business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses for example auto manufacturing use their particular expensive machines and tools most efficiently whenever they use them constantly with full capacity, but the car market in Europe in the 1950s/60s was more in season than today, with sales diminishing inside Winter, then peaking in early summer months: Borgward’s inventory of unsold cars right at the end of 1960 was above usual, reflecting ambitious growth programs, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered by the North American dealers inside 1960 (and in the 12, 000 delivered to these individuals) 6, 000 might have to become taken back following a slump in American demand. (Borgward was not the only European auto maker hit by way of North American slump successful for imported cars through 1960. In the same year two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
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At the conclusion of December 1960 Borgward approached the financial institution for a further one particular million Marks of credit ratings, the loan to be backed by the guarantee from the Bremen regional government which initially the Bremen senators decided provide. However, following the flood involving critical press comment the actual senators withdrew their promise. 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 inside a still hostile media, Borgward agreed to the senate’s terms on several February 1961, thereby averting the bankruptcy of the business.The Bremen Senate furthermore insisted on appointing a nominee as chairman on the company’s supervisory board. The man they chose was Johannes Semler which reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice towards the breadth of Semler’s job. He had studied legislations at university and worked initially as a lawyer. The scion of a leading Hamburg political family, in 1945 he experienced himself been a founding member of the centre-right CSU bash, and was a person in the Bundestag between 1950 as well as 1953. Despite his Hamburg beginning, Semler was by on this occasion based in Munich, with a network of contacts within the Bavarian establishment that probably included fellow CSU politician plus 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 in order to chair the Borgward supervisory panel would, in retrospect, contribute to the controversy that followed the Borgward bankruptcy.
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On 28 July 1961 Semler, as Chairman of the particular supervisory board joined the directors of the three companies Borgward, Goliath and Lloyd to instigate proceedings with the establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling the business to continue to trade while as well protecting the interests of creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” have got suggested that Semler, for reasons of their own, never had any purpose of allowing the Borgward auto-businesses for you to survive.
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