Borgward is surely an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in the actual 1960s. The Borgward group made four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's grand son, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the corporation's first new car with over 40 years, the BX7 at your 2015 International Motor Show.The origins of Bremen's most significant auto-business get back on 1905 with the business in nearby Varel from the "Hansa Automobilgesellschaft" and the muse in Bremen itself involving "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 financial status then confronting Germany, the business failed to prosper and from the late 1920s faced a bankruptcy proceeding. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the scope of his automotive business, and he took control of it.
The first "automobile" Carl Borgward intended was the 1924 Blitzkarren (super cart), a sort of little three-wheeled van with 2 hp (1. 5 kW), which was an enormous success out there gap it filled. Traders with a small budget got it for delivery. The Reichspost ordered some of them for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the nonetheless three wheeler timber presented synthetic leather bodied 5 or 7 hp Goliath Pioneer. Borgward turned his care about the other businesses along with led the development on the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 along with in 1939 the brand was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used many of the brand names from businesses he had acquired through the years to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase the number of steel allocated to his business each time of austerity and rationing. For many purposes the companies would be run to be a single entity, but in a business operated by way of a man to whom delegation wouldn't come naturally the growth of legal entities nonetheless added unhelpful layers of complexity throughout the 1950s and encouraged a broadening in the range which in the end proved financially unsustainable using the sales volumes achievable. In 1949 company presented the Borgward Hansa 1500.On the list of top engineers at Borgward coming from 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 with the life of the company. In 1960 the Borgward P100 had 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 transforming into a successful Formula Two power unit (that has been also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such since air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies such as Opel and VW took benefit from economies of scale in addition to kept their prices low to find market share, Borgward's cost structure was even more than necessary for its size, as it basically handled as four tiny independent companies and don't implemented such basic charge reduction strategies as joint development and parts sharing relating to the company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced like a water-cooled boxer with entrance wheel drive, but plagued with problems including water leakage and gearbox mistakes. Lloyd lost money on the car community . was more expensive in comparison with its direct competitors.In 1961, the company was required into liquidation by collectors. Carl Borgward died within July 1963, still insisting the company had been technically solvent. This proved to be true inside the sense that after the actual creditors were paid in full, there was still four. 5 million Marks left from the business.
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Stories of difficulties at Borgward surfaced in the article that appeared throughout Germany's leading news mag, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly critical of Carl Borgward's company approach, and included many on the arguments later advanced to spell out or justify the company's demise. The widest range associated with cars from any supplier in Germany, produced by three till recently operationally autonomous businesses (Borgward, Goliath and Lloyd) has been supporting a turnover connected with only 650 million Scars, placing the overall sales value on the combined Borgward auto businesses only in fifth place among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation of new and modified types featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") presented rise to components which too often did not work, broke down or fell into apart, resulting in massive charges for pre-delivery remediation and/or post delivery warranty work that found their made use of to the company.The December 1960 Spiegel article was not the only serious public criticism targeting Borgward currently: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild magazine and in television reports. Critical media commentaries likewise appeared concerning large loans to the Borgward Group provided by the local Landesbank.It is apparent the business was confronting cash-flow difficulties by the end of 1960. Capital intensive businesses for example auto manufacturing use their particular expensive machines and tools most efficiently as long as they use them constantly at full capacity, but the car market in Europe inside the 1950s/60s was more seasons than today, with sales diminishing throughout Winter, then peaking in early summer months: Borgward’s inventory of unsold cars by the end of 1960 was higher than usual, reflecting ambitious growth strategies, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered because of the North American dealers throughout 1960 (and with the 12, 000 delivered to these individuals) 6, 000 might have to become taken back following a slump in North american demand. (Borgward was not really the only European auto maker hit with a North American slump widely used for imported cars while in 1960. In the same season two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
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Right at the end of December 1960 Borgward approached the lender for a further 1 million Marks of credit history, 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 associated with critical press comment your senators withdrew their ensure. They now required Carl Borgward to pledge the corporation 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 this senate’s terms on several February 1961, thereby averting the bankruptcy on the business.The Bremen Senate also insisted on appointing its nominee as chairman on the company’s supervisory board. The man they select was Johannes Semler who reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice on the breadth of Semler’s profession. He had studied rules at university and worked initially as a lawyer. The scion of a top Hamburg political family, in 1945 he acquired himself been a founding member of the centre-right CSU celebration, and was a member of the Bundestag between 1950 in addition to 1953. Despite his Hamburg origins, Semler was by this time based in Munich, with a network of contacts in the Bavarian establishment that almost certainly included fellow CSU politician along with 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 since the representative of the Bremen senators for you to chair the Borgward supervisory board would, in retrospect, contribute to the dispute that followed the Borgward individual bankruptcy.
About 28 July 1961 Semler, as Chairman of this supervisory board joined the directors on the three companies Borgward, Goliath and Lloyd to instigate proceedings to the establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling the company to continue to trade while as well protecting the interests regarding creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of her own, never had any purpose of allowing the Borgward auto-businesses to be able to survive.
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