Borgward can be an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in the particular 1960s. The Borgward group produced four brands of autos: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's grandson, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the business's first new car inside over 40 years, the BX7 at the actual 2015 International Motor Show.The origins of Bremen's most significant auto-business go back to 1905 with the business in nearby Varel from the "Hansa Automobilgesellschaft" and the walls in Bremen itself connected with "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 economic situation then confronting Germany, the business failed to prosper and with the late 1920s faced a bankruptcy proceeding. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the scope of his auto business, and he took control than it.
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The first "automobile" Carl Borgward designed was the 1924 Blitzkarren (lightning cart), a sort of teeny three-wheeled van with only two hp (1. 5 kW), which was an enormous success already in the market gap it filled. Traders with a small budget purchased for delivery. The Reichspost ordered most of them for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the still three wheeler timber presented synthetic leather bodied 5 as well as 7 hp Goliath Pioneer. Borgward turned his awareness of the other businesses in addition to led the development with the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 and also in 1939 the title was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from organizations he had acquired over time to found three different companies: Borgward, Goliath and Lloyd. This was intended to increase the amount of steel allocated to his business at the same time of austerity and rationing. For many purposes the firms would be run like a single entity, but in a business operated by way of man to whom delegation wouldn't come naturally the expansion of legal entities nonetheless added unhelpful layers of complexity from the 1950s and encouraged a broadening in the range which in the end proved financially unsustainable with the sales volumes achievable. In 1949 company introduced 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 started out in 1954. The Isabella would become Borgward's most popular model and remained in production for the life of the business. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (that has been also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such since air suspension and automatic transmission, the company had trouble competing available. While larger companies such as Opel and VW took advantage of 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 size, as it basically managed as four tiny independent companies and never implemented such basic cost reduction strategies as shared development and parts sharing relating to the company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced like a water-cooled boxer with entry wheel drive, but plagued with problems like water leakage and gearbox errors. Lloyd lost money on the car community . was more expensive than its direct competitors.In 1961, the company was pressured into liquidation by lenders. Carl Borgward died inside July 1963, still insisting the company had been technically solvent. This proved to be true in the sense that after the particular creditors were paid fully, there was still 4. 5 million Marks left from the business.
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Accounts of difficulties at Borgward surfaced in the article that appeared in Germany's leading news newspaper, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places repetitive Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s front cover. It was strongly essential of Carl Borgward's business approach, and included many from the arguments later advanced to go into detail or justify the firm's demise. The widest range involving cars from any company in Germany, produced by three until finally recently operationally autonomous organizations (Borgward, Goliath and Lloyd) seemed to be supporting a turnover associated with only 650 million Marks, placing the overall sales value through the combined Borgward auto firms 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 types featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") provided rise to components which many times did not work, broke down or fell into apart, resulting in massive payments for pre-delivery remediation and/or write-up delivery warranty work that found their sources that are to the company.The December 1960 Spiegel article wasn't the only serious open criticism targeting Borgward presently: suddenly stridently negative (in case more succinct) comments also resulted in in the influential mass-market Bild classifieds and in television accounts. Critical media commentaries additionally appeared concerning large loans towards Borgward Group provided because of the local Landesbank.It is apparent that the business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses like auto manufacturing use their own expensive machines and tools most efficiently if they use them constantly at full capacity, but the car market in Europe inside the 1950s/60s was more in season than today, with sales diminishing inside Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars right at the end of 1960 was greater than usual, reflecting ambitious growth ideas, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered with the North American dealers throughout 1960 (and on the 12, 000 delivered to all of them) 6, 000 might have being taken back following a slump in American demand. (Borgward was not the only real European auto maker hit by a North American slump sought after for imported cars while in 1960. In the same calendar 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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Towards the end of December 1960 Borgward approached the bank for a further just one million Marks of credit rating, the loan to be backed by way of guarantee from the Bremen regional government which initially the Bremen senators decided provide. However, following the flood involving critical press comment the senators withdrew their ensure. 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 in a very still hostile media, Borgward agreed to the senate’s terms on 5 February 1961, thereby averting the bankruptcy from the business.The Bremen Senate also insisted on appointing its very own nominee as chairman with 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 to English, does less than full justice towards the breadth of Semler’s career. He had studied law at university and worked initially as a lawyer. The scion of a top Hamburg political family, in 1945 he experienced himself been a founding member of the centre-right CSU celebration, and was a person in the Bundestag between 1950 and also 1953. Despite his Hamburg beginning, Semler was by this time around based in Munich, with a network of contacts inside Bavarian establishment that probably included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position in the Bizone. The appointment of Johannes Semler since the representative of the Bremen senators for you to chair the Borgward supervisory table would, in retrospect, contribute to the controversy that followed the Borgward personal bankruptcy.
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Upon 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 just a court sanctioned scheme of arrangement enabling this company to continue to trade while at the same time protecting the interests connected with creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November through the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of her own, never had any purpose of allowing the Borgward auto-businesses to survive.
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