Borgward is an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in this 1960s. The Borgward group made four brands of autos: Borgward, Hansa, Goliath and Lloyd.The marque has because 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 businesses first new car within over 40 years, the BX7 at the 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business go back to 1905 with the business in nearby Varel on the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself associated with "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to 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 a bankruptcy proceeding. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand this scope of his automobile business, and he took control than it.
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The very first "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo cart), a sort of tiny three-wheeled van with 2 hp (1. 5 kW), which was an enormous success in the market gap it filled. Traders with a small budget bought it for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had nowadays evolved into the nevertheless three wheeler timber framed synthetic leather bodied 5 as well as 7 hp Goliath Leading. Borgward turned his care about the other businesses in addition to led the development from the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 as well as in 1939 the identify was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that remained in production until 1942.After World War II, in 1946 Carl Borgward used many of the brand names from organizations he had acquired through the years to found three separate companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business during a period of austerity and rationing. For many purposes the businesses would be run as 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 however added unhelpful layers of complexity with the 1950s and encouraged a broadening from the range which in the end proved financially unsustainable while using sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of several top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most widely used model and remained in production to the life of the company. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a brand of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (which was also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such since air suspension and automatic transmission, the company had trouble competing out there. While larger companies just like Opel and VW took benefit from economies of scale and also kept their prices low to find market share, Borgward's cost structure was even greater than necessary for its dimension, as it basically operated as four tiny independent companies and never implemented such basic cost reduction strategies as shared development and parts sharing between your company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced being a water-cooled boxer with entry wheel drive, but plagued with problems for example water leakage and gearbox errors. Lloyd lost money on the car even though it was more expensive as compared to its direct competitors.In 1961, the company was pushed 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 inside the sense that after this creditors were paid entirely, 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 magazine, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly essential of Carl Borgward's company approach, and included many on the arguments later advanced to explain or justify the business's demise. The widest range regarding cars from any supplier in Germany, produced by three until eventually recently operationally autonomous businesses (Borgward, Goliath and Lloyd) ended up being supporting a turnover connected with only 650 million Signifies, placing the overall sales value from the combined Borgward auto firms only in fifth position 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 products featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") presented rise to components which excessively did not work, broke down or dropped apart, resulting in massive charges for pre-delivery remediation and/or post delivery warranty work that found their long ago to the company.The December 1960 Spiegel article hasn't been the only serious community criticism targeting Borgward currently: suddenly stridently negative (if more succinct) comments also turned up in the influential mass-market Bild magazine and in television stories. Critical media commentaries furthermore appeared concerning large loans on the Borgward Group provided through the local Landesbank.It is apparent that this business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses including auto manufacturing use their particular expensive machines and tools most efficiently if they use them constantly in full capacity, but the car market in Europe inside 1950s/60s was more seasons than today, with sales diminishing in Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars right at the end of 1960 was higher than usual, reflecting ambitious growth ideas, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered from the North American dealers inside 1960 (and with the 12, 000 delivered to them) 6, 000 might have to be taken back following a slump in North american demand. (Borgward was not the only European auto maker hit by way of North American slump popular for imported cars through 1960. In the same season two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the bank for a further one particular million Marks of credit rating, the loan to be backed by way of guarantee from the Bremen local government which initially the Bremen senators consented to provide. However, following the flood associated with critical press comment this senators withdrew their assurance. They now required Carl Borgward to pledge the company itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported in a still hostile media, Borgward agreed to this senate’s terms on 5 February 1961, thereby averting the bankruptcy from the business.The Bremen Senate likewise insisted on appointing a nominee as chairman on the company’s supervisory board. The man they select was Johannes Semler with whom reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice towards breadth of Semler’s vocation. He had studied regulation at university and worked initially being a lawyer. The scion of a top Hamburg political family, in 1945 he acquired himself been a founding person in the centre-right CSU party, and was a member of the Bundestag between 1950 and also 1953. Despite his Hamburg origins, Semler was by on this occasion based in Munich, with a network of contacts inside Bavarian establishment that likely included fellow CSU politician as well as 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 for the reason that representative of the Bremen senators in order to chair the Borgward supervisory board would, in retrospect, contribute to the hot debate that followed the Borgward chapter 7.
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With 28 July 1961 Semler, as Chairman of your supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided to get a court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while concurrently protecting the interests connected with creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of his own, never had any objective of allowing the Borgward auto-businesses in order to survive.
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