Borgward is an automobile manufacturer originally created by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in your 1960s. The Borgward group produced four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has considering that been revived by Carl Borgward's son, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the company's first new car with over 40 years, the BX7 at the 2015 International Motor Show.The origins of Bremen's most significant auto-business return to 1905 with the organization in nearby Varel with the "Hansa Automobilgesellschaft" and the building blocks in Bremen itself involving "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 financial crisis then confronting Germany, the business failed to prosper and through the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator from the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand your scope of his car business, and he took control than it.
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The first "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo cart), a sort of teeny 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 some of them for postal service.In 1929, Borgward became the home of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had nowadays evolved into the still three wheeler timber presented synthetic leather bodied 5 or even 7 hp Goliath Pioneer. Borgward turned his focus on the other businesses as well as led the development in the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 along with in 1939 the identify was shortened to Borgward 2000. The 2000 model was as well as the Borgward 2300that always been in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from corporations he had acquired over the years to found three distinct companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business at a time of austerity and rationing. For many purposes nokia's would be run being a single entity, but in a business operated by a man to whom delegation did not come naturally the proliferation of legal entities however added unhelpful layers of complexity with the 1950s and encouraged a broadening from the range which in the long run proved financially unsustainable with all the sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.One of many 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 favored model and remained in production for that life of the firm. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers inside 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 in the German market such since air suspension and automated transmission, the company had trouble competing in the marketplace. While larger companies just like Opel and VW took selling point of economies of scale in addition to kept their prices low to find market share, Borgward's cost structure was even more than necessary for its dimensions, as it basically managed as four tiny independent companies rather than implemented such basic price tag reduction strategies as shared development and parts sharing between the company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced like a water-cooled boxer with front wheel drive, but plagued with problems such as water leakage and gearbox secrets. Lloyd lost money on the car though it was more expensive in comparison with its direct competitors.In 1961, the company was forced into liquidation by creditors. Carl Borgward died in July 1963, still insisting the company were being technically solvent. This proved to be true inside the sense that after this creditors were paid 100 %, there was still four. 5 million Marks left from the business.
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Stories of difficulties at Borgward surfaced within the article that appeared in Germany's leading news magazine, “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 entry cover. It was strongly crucial of Carl Borgward's small business approach, and included many with the arguments later advanced to explain or justify the businesses demise. The widest range associated with cars from any manufacturer in Germany, produced by three right up until recently operationally autonomous businesses (Borgward, Goliath and Lloyd) was supporting a turnover of only 650 million Scars, placing the overall sales value from the combined Borgward auto firms only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation involving new and modified products featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") offered rise to components which excessively 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 sources that are to the company.The December 1960 Spiegel article had not been the only serious open public criticism targeting Borgward right now: suddenly stridently negative (in case more succinct) comments also resulted in in the influential mass-market Bild classifieds and in television accounts. Critical media commentaries furthermore appeared concerning large loans to the Borgward Group provided through the local Landesbank.It is apparent that the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses like auto manufacturing use the expensive machines and tools most efficiently when they use them constantly from full capacity, but the car market in Europe from the 1950s/60s was more in season than today, with sales diminishing with Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars right at the end of 1960 was above usual, reflecting ambitious growth ideas, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered with the North American dealers inside 1960 (and in the 12, 000 delivered to all of them) 6, 000 might have for being taken back following a slump in American demand. (Borgward was not the only real European auto maker hit by way of North American slump popular for imported cars during 1960. In the same 12 months two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
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At the conclusion of December 1960 Borgward approached the financial institution for a further just one million Marks of credit rating, the loan to be backed by the guarantee from the Bremen regional government which initially the Bremen senators decided to provide. However, following the flood regarding critical press comment the particular senators withdrew their guarantee. They now required Carl Borgward to pledge the corporation itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported in a still hostile media, Borgward agreed to the actual senate’s terms on several February 1961, thereby averting the bankruptcy of the business.The Bremen Senate also insisted on appointing a unique nominee as chairman from the company’s supervisory board. The man they select was Johannes Semler to whom reports generally describe to be a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated straight into English, does less than full justice towards breadth of Semler’s job. He had studied rules at university and worked initially as being a lawyer. The scion of a leading 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 as well as 1953. Despite his Hamburg beginning, Semler was by on this occasion based in Munich, with a network of contacts inside Bavarian establishment that possibly included fellow CSU politician and the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position within the Bizone. The appointment of Johannes Semler as the representative of the Bremen senators in order to chair the Borgward supervisory panel would, in retrospect, contribute to the controversy that followed the Borgward a bankruptcy proceeding.
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Upon 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 that establishment of a “Vergleichsverfahren”, which would have provided to get a court sanctioned scheme of arrangement enabling the company to continue to trade while as well protecting the interests associated with creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November because of 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 for you to survive.
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