Borgward is surely an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in this 1960s. The Borgward group generated four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grand son, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the business's first new car inside over 40 years, the BX7 at the actual 2015 International Motor Show.The origins of Bremen's most significant auto-business resume 1905 with the institution in nearby Varel with the "Hansa Automobilgesellschaft" and the muse in Bremen itself associated with "Namag", maker of the Lloyd car or truck. These two businesses merged in 1914 in order to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economy then confronting Germany, the business failed to prosper and from the late 1920s faced chapter 7. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a chance greatly to expand the particular scope of his vehicle business, and he took control of it.
The 1st "automobile" Carl Borgward made was the 1924 Blitzkarren (turbo cart), a sort of very small three-wheeled van with 2 hp (1. 5 kW), which was an enormous success already in the market gap it filled. Traders with a small budget purchased for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the however three wheeler timber presented synthetic leather bodied 5 or perhaps 7 hp Goliath Founder. Borgward turned his focus on the other businesses and also led the development from the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 and in 1939 the identify was shortened to Borgward 2000. The 2000 model was followed by the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used a few of the brand names from businesses he had acquired in recent times to found three separate companies: Borgward, Goliath and Lloyd. This was intended to increase how much steel allocated to his business at the same time of austerity and rationing. For many purposes the lenders would be run being a single entity, but in a business operated by way of a man to whom delegation would not come naturally the spreading of legal entities however added unhelpful layers of complexity throughout the 1950s and encouraged a broadening on the range which eventually proved financially unsustainable with all the sales volumes achievable. In 1949 company presented the Borgward Hansa 1500.On the list of top engineers at Borgward by 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella began in 1954. The Isabella would become Borgward's hottest model and remained in production for the life of the firm. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers from the late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (which was 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 marketplace. While larger companies such as Opel and VW took benefit of economies of scale and kept their prices low to find market share, Borgward's cost structure was even greater than necessary for its dimension, as it basically handled as four tiny independent companies and not implemented such basic price reduction strategies as joint development and parts sharing involving the company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced being a water-cooled boxer with the front wheel drive, but plagued with problems for example water leakage and gearbox snags. Lloyd lost money on the car even though it was more expensive compared to its direct competitors.In 1961, the company was compelled into liquidation by credit card companies. Carl Borgward died throughout July 1963, still insisting the company had been technically solvent. This proved to be true within the sense that after the creditors were paid 100 %, there was still some. 5 million Marks left from the business.
Reviews of difficulties at Borgward surfaced in a article that appeared with Germany's leading news mag, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s the 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 corporation's demise. The widest range connected with cars from any supplier in Germany, produced by three until recently operationally autonomous companies (Borgward, Goliath and Lloyd) was supporting a turnover of only 650 million Scars, placing the overall sales value through the combined Borgward auto businesses 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 regarding new and modified models featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") presented rise to components which too often did not work, broke down or dropped apart, resulting in massive bills for pre-delivery remediation and/or post delivery warranty work that found their made use of to the company.The December 1960 Spiegel article had not been the only serious community criticism targeting Borgward at the moment: suddenly stridently negative (when more succinct) comments also resulted in in the influential mass-market Bild magazine and in television reports. Critical media commentaries likewise appeared concerning large loans towards the Borgward Group provided by the local Landesbank.It is apparent that this 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 in the 1950s/60s was more seasonal than today, with sales diminishing with Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars at the end of 1960 was above usual, reflecting ambitious growth plans, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered with the North American dealers with 1960 (and on the 12, 000 delivered to these people) 6, 000 might have being taken back following a slump in North american demand. (Borgward was not the sole European auto maker hit with a North American slump widely used for imported cars while in 1960. In the same 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.
Towards the end of December 1960 Borgward approached your banker for a further one particular million Marks of credit rating, the loan to be backed by way of a guarantee from the Bremen regional government which initially the Bremen senators decided provide. However, following the flood of critical press comment this senators withdrew their assure. They now required Carl Borgward to pledge the business itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported in the still hostile media, Borgward agreed to the senate’s terms on some February 1961, thereby averting the bankruptcy of the business.The Bremen Senate in addition insisted on appointing its nominee as chairman with the company’s supervisory board. The man they select was Johannes Semler whom reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice towards the breadth of Semler’s job. He had studied law at university and worked initially to be a lawyer. The scion of a respected Hamburg political family, in 1945 he got himself been a founding member of the centre-right CSU celebration, and was a person in the Bundestag between 1950 and 1953. Despite his Hamburg beginnings, Semler was by these times based in Munich, with a network of contacts within the Bavarian establishment that possibly included fellow CSU politician and also the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a top administrative position in the Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators for you to chair the Borgward supervisory aboard would, in retrospect, contribute to the controversy that followed the Borgward a bankruptcy proceeding.
Upon 28 July 1961 Semler, as Chairman of this 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 any court sanctioned scheme of arrangement enabling the business to continue to trade while as well protecting the interests associated with creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of his very own, never had any intent of allowing the Borgward auto-businesses to help survive.
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