Borgward is surely an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen inside Germany, ceased operations in this 1960s. The Borgward group developed four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has considering that been revived by Carl Borgward's son, Christian Borgward, together with his partner Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the business's first new car throughout over 40 years, the BX7 at the particular 2015 International Motor Show.The origins of Bremen's most significant auto-business go back to 1905 with the establishment in nearby Varel with the "Hansa Automobilgesellschaft" and the walls in Bremen itself regarding "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial situation then confronting Germany, the business failed to prosper and through the late 1920s faced a bankruptcy proceeding. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the actual scope of his auto business, and he took control than it.
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The very first "automobile" Carl Borgward intended was the 1924 Blitzkarren (lightning cart), a sort of little three-wheeled van with a couple of hp (1. 5 kW), which was an enormous success on the market gap it filled. Traders with a small budget bought it for delivery. The Reichspost ordered many for postal service.In 1929, Borgward became the home of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the still three wheeler timber presented synthetic leather bodied 5 as well as 7 hp Goliath Leading. Borgward turned his focus on the other businesses as well as led the development of the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 along with in 1939 the brand was shortened to Borgward 2000. The 2000 model was as well as the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from organizations he had acquired over time to found three independent 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 nokia's would be run as a single entity, but in a business operated with a man to whom delegation wouldn't come naturally the growth of legal entities on the other hand added unhelpful layers of complexity from the 1950s and encouraged a broadening on the range which in the end proved financially unsustainable with the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.Among the top engineers at Borgward through 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's hottest model and remained in production for your 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 late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (that is also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such since air suspension and intelligent transmission, the company had trouble competing in the marketplace. 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 beyond necessary for its sizing, as it basically operated as four tiny independent companies and not implemented such basic price tag reduction strategies as articulation development and parts sharing between company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced to be a water-cooled boxer with the front wheel drive, but plagued with problems like water leakage and gearbox errors. Lloyd lost money on the car just about the most was more expensive when compared with its direct competitors.In 1961, the company was forced into liquidation by creditors. Carl Borgward died throughout July 1963, still insisting the company have been technically solvent. This proved to be true inside sense that after the creditors were paid fully, there was still 5. 5 million Marks left over from the business.
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Reports of difficulties at Borgward surfaced within an article that appeared in Germany's leading news publication, “Der Spiegel” on 15 December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s entrance cover. It was strongly critical of Carl Borgward's small business approach, and included many with the arguments later advanced to explain or justify the firm's demise. The widest range regarding cars from any producer in Germany, produced by three right up until recently operationally autonomous organizations (Borgward, Goliath and Lloyd) had been supporting a turnover of only 650 million Represents, placing the overall sales value from your combined Borgward auto corporations only in fifth place among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation involving new and modified models featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") offered rise to components which all too often did not work, broke down or fell apart, resulting in massive expenses for pre-delivery remediation and/or publish delivery warranty work that found their long ago to the company.The December 1960 Spiegel article was not the only serious open criticism targeting Borgward currently: suddenly stridently negative (in case more succinct) comments also resulted in in the influential mass-market Bild newspaper and in television reports. Critical media commentaries furthermore appeared concerning large loans towards Borgward Group provided through the local Landesbank.It is apparent how the business was confronting cash-flow difficulties by the end of 1960. Capital intensive businesses like auto manufacturing use their own expensive machines and tools most efficiently when they use them constantly at full capacity, but the car market in Europe inside the 1950s/60s was more seasons than today, with sales diminishing inside Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars right at the end of 1960 was greater than usual, reflecting ambitious growth programs, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered from the North American dealers within 1960 (and in the 12, 000 delivered to these individuals) 6, 000 might have being taken back following a slump in North american demand. (Borgward was not the one European auto maker hit by the North American slump popular for imported cars while in 1960. In the same season two ships carrying Renault Dauphines were turned back mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the lending company for a further a single million Marks of credit ratings, the loan to be backed with a guarantee from the Bremen regional government which initially the Bremen senators decided provide. However, following the flood regarding critical press comment your senators withdrew their assurance. They now required Carl Borgward to pledge the business itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported in a very still hostile media, Borgward agreed to the senate’s terms on some February 1961, thereby averting the bankruptcy with the business.The Bremen Senate additionally insisted on appointing its very own nominee as chairman of the company’s supervisory board. The man they decided to go with was Johannes Semler which 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 profession. He had studied regulation at university and worked initially as being a lawyer. The scion of a top Hamburg political family, in 1945 he had himself been a founding person in the centre-right CSU gathering, and was a member of the Bundestag between 1950 in addition to 1953. Despite his Hamburg origins, Semler was by these times based in Munich, with a network of contacts inside the Bavarian establishment that likely included fellow CSU politician plus 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 table would, in retrospect, contribute to the controversy that followed the Borgward personal bankruptcy.
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With 28 July 1961 Semler, as Chairman of the 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 while doing so protecting the interests involving creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath companies were declared bankrupt, followed in November through the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of his own, never had any goal of allowing the Borgward auto-businesses for you to survive.
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