Borgward is an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen inside Germany, ceased operations in the particular 1960s. The Borgward group created four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's son, Christian Borgward, together with his partner Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the business's first new car in 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 place in nearby Varel in the "Hansa Automobilgesellschaft" and the foundation in Bremen itself connected with "Namag", maker of the Lloyd car. These two businesses merged in 1914 to form the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economy then confronting Germany, the business failed to prosper and by the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand your scope of his vehicle business, and he took control of the usb ports.
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The first "automobile" Carl Borgward intended was the 1924 Blitzkarren (super cart), a sort of little three-wheeled van with a couple of hp (1. 5 kW), which was an enormous success in the market gap it filled. Traders with a small budget got it for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the nonetheless three wheeler timber presented synthetic leather bodied 5 or even 7 hp Goliath Leading. Borgward turned his awareness of the other businesses along with led the development in the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 and also in 1939 the label was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used many of the brand names from corporations 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 during a period of austerity and rationing. For many purposes the businesses would be run to be a single entity, but in a business operated by a man to whom delegation did not come naturally the spreading of legal entities nonetheless added unhelpful layers of complexity throughout the 1950s and encouraged a broadening from the range which eventually proved financially unsustainable while using the sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.Among the top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's most widely used 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 brand of 1500 cc sports racers inside late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (which has been also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such as air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies like Opel and VW took selling point of economies of scale in addition to kept their prices low to get market share, Borgward's cost structure was even more than necessary for its size, as it basically handled as four tiny independent companies and do not implemented such basic cost reduction strategies as mutual development and parts sharing between the company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced as a water-cooled boxer with front wheel drive, but plagued with problems including water leakage and gearbox snags. Lloyd lost money on the car even though it was more expensive than its direct competitors.In 1961, the company was required into liquidation by credit card companies. Carl Borgward died throughout July 1963, still insisting the company ended up technically solvent. This proved to be true from the sense that after the actual creditors were paid completely, there was still some. 5 million Marks left over from the business.
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Studies of difficulties at Borgward surfaced within an article that appeared with Germany's leading news magazine, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted with a picture of Borgward, cigar in mouth, on the magazine’s top cover. It was strongly essential of Carl Borgward's business approach, and included many from the arguments later advanced to spellout or justify the firm's demise. The widest range connected with cars from any manufacturer in Germany, produced by three right up until recently operationally autonomous corporations (Borgward, Goliath and Lloyd) has been supporting a turnover connected with only 650 million Signifies, placing the overall sales value on the combined Borgward auto companies only in fifth position 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 improvements ("fast manisch[e] Konstruierwut") presented rise to components which too often did not work, broke down or fell into apart, resulting in massive costs for pre-delivery remediation and/or publish delivery warranty work that found their made use of to the company.The December 1960 Spiegel article had not been the only serious general public criticism targeting Borgward presently: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild newspapers and in television reviews. Critical media commentaries additionally appeared concerning large loans on the Borgward Group provided with the local Landesbank.It is apparent that this business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses for example auto manufacturing use his or her expensive machines and tools most efficiently when they use them constantly on full capacity, but the car market in Europe inside 1950s/60s was more periodic than today, with sales diminishing with Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars towards the end of 1960 was greater than usual, reflecting ambitious growth ideas, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered because of the North American dealers throughout 1960 (and with the 12, 000 delivered to these) 6, 000 might have to get taken back following a slump in Us demand. (Borgward was not really the only European auto maker hit with a North American slump widely used for imported cars throughout 1960. In the same calendar year two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
At the conclusion of December 1960 Borgward approached your banker for a further 1 million Marks of credit ratings, the loan to be backed by way of a guarantee from the Bremen local government which initially the Bremen senators decided to provide. However, following the flood involving critical press comment the particular senators withdrew their ensure. They now required Carl Borgward to pledge this company 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 the actual senate’s terms on some February 1961, thereby averting the bankruptcy on the business.The Bremen Senate furthermore insisted on appointing a nominee as chairman of the company’s supervisory board. The man they select was Johannes Semler to whom reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice on the breadth of Semler’s profession. He had studied legislations 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 party, and was a person in the Bundestag between 1950 along with 1953. Despite his Hamburg roots, Semler was by on this occasion based in Munich, with a network of contacts within the Bavarian establishment that almost certainly included fellow CSU politician and also 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 because the representative of the Bremen senators to be able to chair the Borgward supervisory panel would, in retrospect, contribute to the conflict that followed the Borgward a bankruptcy proceeding.
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With 28 July 1961 Semler, as Chairman of the actual supervisory board joined the directors from the three companies Borgward, Goliath and Lloyd to instigate proceedings for that establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling the organization to continue to trade while at the same time protecting the interests associated with creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of their own, never had any intent of allowing the Borgward auto-businesses to survive.
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