Borgward is an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in the actual 1960s. The Borgward group developed 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 companion Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the corporation's first new car throughout over 40 years, the BX7 at the actual 2015 International Motor Present.The origins of Bremen's most significant auto-business get back on 1905 with the organization in nearby Varel with the "Hansa Automobilgesellschaft" and the walls in Bremen itself of "Namag", maker of the Lloyd vehicle. These two businesses merged in 1914 to the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial status then confronting Germany, the business failed to prosper and because of the late 1920s faced chapter 7. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a chance greatly to expand the actual scope of his car business, and he took control than it.
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The primary "automobile" Carl Borgward created was the 1924 Blitzkarren (lightning cart), a sort of little three-wheeled van with a couple of 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 quite a few for postal service.In 1929, Borgward became the 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 nonetheless three wheeler timber framed synthetic leather bodied 5 or 7 hp Goliath Leading. Borgward turned his attention to the other businesses in addition to led the development of the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 along with in 1939 the brand was shortened to Borgward 2000. The 2000 model was followed by the Borgward 2300that always been in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from firms he had acquired over the years to found three individual 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 nokia's would be run being a single entity, but in a business operated by the man to whom delegation did not come naturally the spreading of legal entities however added unhelpful layers of complexity through the 1950s and encouraged a broadening with the range which finally proved financially unsustainable using the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of several top engineers at Borgward by 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella began in 1954. The Isabella would become Borgward's most widely used model and remained in production for that life of the business. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers within the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (that is also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such since air suspension and programmed transmission, the company had trouble competing in the market. While larger companies similar to Opel and VW took selling point of economies of scale along with kept their prices low to get market share, Borgward's cost structure was even above necessary for its dimension, as it basically operated as four tiny independent companies and do not implemented such basic cost reduction strategies as articulation development and parts sharing between the company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced like a water-cooled boxer with top wheel drive, but plagued with problems like water leakage and gearbox snags. Lloyd lost money on the car though it was more expensive compared to its direct competitors.In 1961, the company was pushed into liquidation by loan companies. Carl Borgward died with July 1963, still insisting the company were being technically solvent. This proved to be true in the sense that after this creditors were paid completely, there was still several. 5 million Marks left over from the business.
Reports of difficulties at Borgward surfaced in the article that appeared with Germany's leading news mag, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly crucial of Carl Borgward's company approach, and included many with the arguments later advanced to spell out or justify the businesses demise. The widest range regarding cars from any maker in Germany, produced by three right up until recently operationally autonomous companies (Borgward, Goliath and Lloyd) ended up being supporting a turnover regarding only 650 million Marks, placing the overall sales value in the combined Borgward auto firms only in fifth situation 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 versions featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") gave rise to components which many times 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 made use of to the company.The December 1960 Spiegel article was not the only serious community criticism targeting Borgward right now: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild magazine and in television studies. Critical media commentaries likewise appeared concerning large loans towards Borgward Group provided because of the local Landesbank.It is apparent that this business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses like auto manufacturing use their expensive machines and tools most efficiently whenever they use them constantly at full capacity, but the car market in Europe within the 1950s/60s was more in season than today, with sales diminishing inside Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was greater than usual, reflecting ambitious growth options, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered from the North American dealers with 1960 (and of the 12, 000 delivered to all of them) 6, 000 might have to be taken back following a slump in Us demand. (Borgward was not the one European auto maker hit by way of North American slump sought after for imported cars throughout 1960. In the same 12 months two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
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At the end of December 1960 Borgward approached the bank for a further a single million Marks of credit score, the loan to be backed by the guarantee from the Bremen local government which initially the Bremen senators consented to provide. However, following the flood of critical press comment this senators withdrew their assurance. 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 a very still hostile media, Borgward agreed to the actual senate’s terms on 4 February 1961, thereby averting the bankruptcy on the business.The Bremen Senate furthermore insisted on appointing its nominee as chairman in the company’s supervisory board. The man they selected was Johannes Semler whom reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice to the breadth of Semler’s profession. He had studied legislation at university and worked initially being a lawyer. The scion of a number one Hamburg political family, in 1945 he experienced himself been a founding member of the centre-right CSU party, and was a person in the Bundestag between 1950 in addition to 1953. Despite his Hamburg origins, Semler was by now based in Munich, with a network of contacts in the Bavarian establishment that almost certainly 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 because representative of the Bremen senators to chair the Borgward supervisory aboard would, in retrospect, contribute to the debate that followed the Borgward a bankruptcy proceeding.
In 28 July 1961 Semler, as Chairman of the supervisory board joined the directors of the three companies Borgward, Goliath and Lloyd to instigate proceedings to the establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling this company to continue to trade while simultaneously protecting the interests associated with creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath corporations 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 intention of allowing the Borgward auto-businesses for you to survive.
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