Borgward can be an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the actual 1960s. The Borgward group created four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's grandson, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Oriental investment, and unveiled the company's first new car with over 40 years, the BX7 at this 2015 International Motor Indicate.The origins of Bremen's most significant auto-business return to 1905 with the organization in nearby Varel of the "Hansa Automobilgesellschaft" and the muse in Bremen itself associated with "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial situation then confronting Germany, the business failed to prosper and with the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator from the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the particular scope of his automotive business, and he took control from it.
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The primary "automobile" Carl Borgward developed was the 1924 Blitzkarren (turbo cart), a sort of small 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 ordered for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the home of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or even 7 hp Goliath Pioneer. Borgward turned his focus on the other businesses in addition to led the development of the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 in addition to in 1939 the identify was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that always been in production until 1942.After World War II, in 1946 Carl Borgward used many of the brand names from organizations he had acquired over the years to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase how much steel allocated to his business at any given time of austerity and rationing. For many purposes the companies would be run as a single entity, but in a business operated by way of man to whom delegation wouldn't come naturally the growth of legal entities on the other hand added unhelpful layers of complexity throughout 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 displayed the Borgward Hansa 1500.One of many top engineers at Borgward by 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 for that life of the business. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these becoming 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 seeing that air suspension and automatic transmission, the company had trouble competing in the marketplace. While larger companies such as Opel and VW took benefit of economies of scale and also kept their prices low to get market share, Borgward's cost structure was even greater than necessary for its dimensions, as it basically operated as four tiny independent companies rather than implemented such basic expense reduction strategies as joint development and parts sharing involving the company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced as a water-cooled boxer with top wheel drive, but plagued with problems including water leakage and gearbox secrets. Lloyd lost money on the car though it was more expensive when compared with its direct competitors.In 1961, the company was pressured into liquidation by loan companies. Carl Borgward died in July 1963, still insisting the company was technically solvent. This proved to be true in the sense that after this creditors were paid fully, there was still some. 5 million Marks left over from the business.
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Accounts of difficulties at Borgward surfaced in an article that appeared with Germany's leading news journal, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted through a picture of Borgward, cigar in mouth, on the magazine’s top cover. It was strongly crucial of Carl Borgward's company approach, and included many on the arguments later advanced to describe or justify the firm's demise. The widest range of cars from any company in Germany, produced by three until recently operationally autonomous companies (Borgward, Goliath and Lloyd) seemed to be supporting a turnover regarding only 650 million Signifies, placing the overall sales value on the combined Borgward auto organizations only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation associated with new and modified versions featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") provided rise to components which all too often did not work, broke down or fell into apart, resulting in massive costs for pre-delivery remediation and/or submit delivery warranty work that found their in the past to the company.The December 1960 Spiegel article had not been the only serious general public criticism targeting Borgward currently: suddenly stridently negative (if more succinct) comments also turned up in the influential mass-market Bild paper and in television reports. Critical media commentaries in addition appeared concerning large loans towards Borgward Group provided with the local Landesbank.It is apparent that the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses such as auto manufacturing use the expensive machines and tools most efficiently should they use them constantly with full capacity, but the car market in Europe in the 1950s/60s was more seasons than today, with sales diminishing throughout Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars at the end of 1960 was more than usual, reflecting ambitious growth options, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered through the North American dealers throughout 1960 (and of the 12, 000 delivered to them) 6, 000 might have to become taken back following a slump in American demand. (Borgward was not the sole European auto maker hit by the North American slump widely used for imported cars while in 1960. In the same 12 months two ships carrying Renault Dauphines were turned last mid-Atlantic because the docks in The big apple 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, the loan to be backed by the guarantee from the Bremen regional government which initially the Bremen senators opted for provide. However, following the flood of critical press comment your senators withdrew their assure. They now required Carl Borgward to pledge the organization itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported inside a still hostile media, Borgward agreed to this senate’s terms on 4 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 selected was Johannes Semler whom reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice towards the breadth of Semler’s vocation. He had studied legislations at university and worked initially as a lawyer. The scion of a number one Hamburg political family, in 1945 he had himself been a founding person in the centre-right CSU get together, and was a person in the Bundestag between 1950 and 1953. Despite his Hamburg beginning, Semler was by this time based in Munich, with a network of contacts inside the Bavarian establishment that almost certainly included fellow CSU politician plus the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position in the Bizone. The appointment of Johannes Semler as the representative of the Bremen senators to help chair the Borgward supervisory aboard would, in retrospect, contribute to the conflict that followed the Borgward personal bankruptcy.
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On 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 your establishment of a “Vergleichsverfahren”, which would have provided for the court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while simultaneously protecting the interests connected with creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” have 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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