Borgward is definitely an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in your 1960s. The Borgward group created four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has due to the fact been revived by Carl Borgward's grand son, Christian Borgward, together with his lover Karlheinz L. Knöss, with assistance from Oriental investment, and unveiled the firm's first new car with over 40 years, the BX7 at your 2015 International Motor Present.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 involving "Namag", maker of the Lloyd auto. 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 from the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand the scope of his automotive business, and he took control from it.
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The 1st "automobile" Carl Borgward created was the 1924 Blitzkarren (turbo cart), a sort of tiny three-wheeled van with a couple of hp (1. 5 kW), which was an enormous success available in the market gap it filled. Traders with a small budget got it for delivery. The Reichspost ordered most of them for postal service.In 1929, Borgward became the home of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the nonetheless three wheeler timber framed synthetic leather bodied 5 or perhaps 7 hp Goliath Leader. Borgward turned his awareness of the other businesses as well as led the development on the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 and also in 1939 the identify was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used some of the brand names from companies he had acquired in the past to found three individual 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 companies would be run as being a single entity, but in a business operated by the man to whom delegation did not come naturally the growth of legal entities on the other hand added unhelpful layers of complexity with the 1950s and encouraged a broadening of the range which ultimately proved financially unsustainable while using the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.Among the top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started out in 1954. The Isabella would become Borgward's most widely used model and remained in production to the life of the corporation. In 1960 the Borgward P100 had been introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers from the late 1950s, with the 16-valve engine from these being a successful Formula Two power unit (that is also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such as air suspension and programmed 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 achieve market share, Borgward's cost structure was even beyond necessary for its measurement, as it basically handled as four tiny independent companies and don't implemented such basic charge reduction strategies as combined development and parts sharing between your company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced to be a water-cooled boxer with front wheel drive, but plagued with problems like water leakage and gearbox secrets. Lloyd lost money on the car community . was more expensive in comparison with its direct competitors.In 1961, the company was pushed into liquidation by credit card companies. Carl Borgward died inside July 1963, still insisting the company have been technically solvent. This proved to be true from the sense that after the particular creditors were paid completely, there was still several. 5 million Marks left over from the business.
Reviews of difficulties at Borgward surfaced within an article that appeared with Germany's leading news publication, “Der Spiegel” on 15 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 front cover. It was strongly essential of Carl Borgward's company approach, and included many with the arguments later advanced to spellout or justify the businesses demise. The widest range involving cars from any manufacturer in Germany, produced by three until finally recently operationally autonomous businesses (Borgward, Goliath and Lloyd) has been supporting a turnover regarding only 650 million Represents, placing the overall sales value in the combined Borgward auto corporations only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation associated with new and modified versions featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") provided rise to components which excessively did not work, broke down or droped apart, resulting in massive payments for pre-delivery remediation and/or post delivery warranty work that found their way back to the company.The December 1960 Spiegel article hasn't been the only serious open public criticism targeting Borgward presently: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild magazine and in television stories. Critical media commentaries likewise appeared concerning large loans towards Borgward Group provided from the local Landesbank.It is apparent the business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses such as auto manufacturing use their expensive machines and tools most efficiently should they use them constantly from full capacity, but the car market in Europe within the 1950s/60s was more in season than today, with sales diminishing throughout Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was more than usual, reflecting ambitious growth programs, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered from the North American dealers inside 1960 (and on the 12, 000 delivered to these) 6, 000 might have to be taken back following a slump in United states demand. (Borgward was not the one European auto maker hit by way of North American slump successful for imported cars in the course of 1960. In the same 12 months two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in Nyc were overcrowded with unsold Dauphines.
At the conclusion of December 1960 Borgward approached the lending company for a further 1 million Marks of credit, the loan to be backed with a guarantee from the Bremen local government which initially the Bremen senators decided provide. However, following the flood of critical press comment your senators withdrew their guarantee. They now required Carl Borgward to pledge the company 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 the actual senate’s terms on some February 1961, thereby averting the bankruptcy in the business.The Bremen Senate furthermore insisted on appointing its nominee as chairman with the company’s supervisory board. The man they decided to go with was Johannes Semler whom reports generally describe to be a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice for the breadth of Semler’s occupation. He had studied rules at university and worked initially being a lawyer. The scion of a respected Hamburg political family, in 1945 he got himself been a founding member of the centre-right CSU party, and was a person in the Bundestag between 1950 and also 1953. Despite his Hamburg sources, Semler was by this time around based in Munich, with a network of contacts within the Bavarian establishment that probably included fellow CSU politician along with the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a top administrative position within 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 conflict that followed the Borgward a bankruptcy proceeding.
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Upon 28 July 1961 Semler, as Chairman of the supervisory board joined the directors of the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided for just a court sanctioned scheme of arrangement enabling the organization to continue to trade while as well protecting the interests of creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath companies were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” have got suggested that Semler, for reasons of his own, never had any objective of allowing the Borgward auto-businesses to help survive.
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