Borgward is definitely an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in the particular 1960s. The Borgward group created four brands of autos: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's grand son, Christian Borgward, together with his lover Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the firm's first new car inside over 40 years, the BX7 at this 2015 International Motor Display.The origins of Bremen's most significant auto-business return to 1905 with the institution in nearby Varel from the "Hansa Automobilgesellschaft" and the walls in Bremen itself involving "Namag", maker of the Lloyd vehicle. These two businesses merged in 1914 to form the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economic situation then confronting Germany, the business failed to prosper and because of the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the possibility greatly to expand this scope of his vehicle business, and he took control than it.
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The initial "automobile" Carl Borgward designed 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 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 director of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Co. " 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 Master. Borgward turned his care about the other businesses along with led the development with the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 in addition to in 1939 the name 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 some of the brand names from companies 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 a time of austerity and rationing. For many purposes the businesses would be run as being a single entity, but in a business operated by way of man to whom delegation did not come naturally the expansion of legal entities nonetheless added unhelpful layers of complexity through the 1950s and encouraged a broadening in the range which eventually proved financially unsustainable with the sales volumes achievable. In 1949 company offered 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 started out in 1954. The Isabella would become Borgward's most popular model and remained in production for your life of the firm. In 1960 the Borgward P100 had been introduced, equipped with pneumatic suspension.Borgward introduced a brand of 1500 cc sports racers within the late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (which was also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such as air suspension and automatic transmission, the company had trouble competing available. While larger companies including Opel and VW took advantage of economies of scale along with kept their prices low to realize market share, Borgward's cost structure was even more than necessary for its sizing, as it basically operated as four tiny independent companies and never implemented such basic price tag reduction strategies as shared development and parts sharing relating to the company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced like a water-cooled boxer with top wheel drive, but plagued with problems including water leakage and gearbox mistakes. Lloyd lost money on the car just about the most was more expensive when compared with its direct competitors.In 1961, the company was required into liquidation by creditors. Carl Borgward died with July 1963, still insisting the company was technically solvent. This proved to be true from the sense that after the creditors were paid fully, there was still 4. 5 million Marks remaining from the business.
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Studies of difficulties at Borgward surfaced within an article that appeared throughout Germany's leading news mag, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s front cover. It was strongly vital of Carl Borgward's organization approach, and included many of the arguments later advanced to spellout or justify the businesses demise. The widest range associated with cars from any supplier in Germany, produced by three until finally recently operationally autonomous corporations (Borgward, Goliath and Lloyd) had been supporting a turnover involving only 650 million Scars, placing the overall sales value from your combined Borgward auto companies only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation connected with new and modified versions featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") gave rise to components which many times did not work, broke down or fell into apart, resulting in massive costs for pre-delivery remediation and/or post delivery warranty work that found their in the past to the company.The December 1960 Spiegel article wasn't the only serious general public criticism targeting Borgward right now: suddenly stridently negative (if more succinct) comments also turned up in the influential mass-market Bild newspaper and in television reports. Critical media commentaries furthermore appeared concerning large loans for the Borgward Group provided with the local Landesbank.It is apparent which the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses like auto manufacturing use their particular expensive machines and tools most efficiently should they use them constantly at full capacity, but the car market in Europe inside 1950s/60s was more periodic than today, with sales diminishing inside Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was greater than usual, reflecting ambitious growth options, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered through the North American dealers throughout 1960 (and from the 12, 000 delivered to these people) 6, 000 might have to get taken back following a slump in American demand. (Borgward was not really the only European auto maker hit by the North American slump widely used for imported cars through 1960. In the same calendar year two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the bank for a further one million Marks of credit, the loan to be backed by a guarantee from the Bremen regional government which initially the Bremen senators decided provide. However, following the flood involving critical press comment your senators withdrew their assure. 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 within a still hostile media, Borgward agreed to this senate’s terms on 5 February 1961, thereby averting the bankruptcy with the business.The Bremen Senate additionally insisted on appointing its very own nominee as chairman in the company’s supervisory board. The man they decided was Johannes Semler to whom reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated directly into English, does less than full justice towards the breadth of Semler’s vocation. He had studied law at university and worked initially as a lawyer. The scion of a leading Hamburg political family, in 1945 he had himself been a founding person in the centre-right CSU gathering, and was a member of the Bundestag between 1950 along with 1953. Despite his Hamburg roots, Semler was by now based in Munich, with a network of contacts within the Bavarian establishment that almost certainly included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position inside Bizone. The appointment of Johannes Semler since the representative of the Bremen senators in order to chair the Borgward supervisory board would, in retrospect, contribute to the debate that followed the Borgward personal bankruptcy.
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In 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 with the establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling the company to continue to trade while concurrently protecting the interests regarding creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of her own, never had any intent of allowing the Borgward auto-businesses to be able to survive.
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