Borgward is definitely an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in the 1960s. The Borgward group developed four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's grand son, Christian Borgward, together with his spouse Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the corporation's first new car in over 40 years, the BX7 at the particular 2015 International Motor Indicate.The origins of Bremen's most significant auto-business return to 1905 with the business in nearby Varel with the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself involving "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economic situation then confronting Germany, the business failed to prosper and with the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand your scope of his auto business, and he took control from it.
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The primary "automobile" Carl Borgward designed was the 1924 Blitzkarren (super cart), a sort of teeny 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 overseer of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the however three wheeler timber framed synthetic leather bodied 5 or perhaps 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 fresh Hansa Borgward 2000 along with in 1939 the brand was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used many of the brand names from firms he had acquired in recent times to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business during a period of austerity and rationing. For many purposes the lenders would be run like a single entity, but in a business operated by a man to whom delegation didn't come naturally the expansion of legal entities even so added unhelpful layers of complexity with the 1950s and encouraged a broadening on the range which ultimately proved financially unsustainable with the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.Among the top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started in 1954. The Isabella would become Borgward's hottest model and remained in production for the life of the corporation. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers within the late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (which has been also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such because air suspension and programmed transmission, the company had trouble competing in the marketplace. While larger companies similar to Opel and VW took advantage of economies of scale and also kept their prices low to realize market share, Borgward's cost structure was even more than necessary for its sizing, as it basically operated as four tiny independent companies and not implemented such basic price reduction strategies as combined development and parts sharing between your company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced to be a water-cooled boxer with the front wheel drive, but plagued with problems such as water leakage and gearbox glitches. Lloyd lost money on the car even though it was more expensive in comparison with its direct competitors.In 1961, the company was required into liquidation by loan companies. Carl Borgward died within July 1963, still insisting the company had been technically solvent. This proved to be true in the sense that after this creditors were paid 100 %, there was still four. 5 million Marks left over from the business.
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Reports of difficulties at Borgward surfaced within the article that appeared in Germany's leading news publication, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s front cover. It was strongly critical of Carl Borgward's organization approach, and included many from the arguments later advanced to explain or justify the firm's demise. The widest range of cars from any company in Germany, produced by three till recently operationally autonomous firms (Borgward, Goliath and Lloyd) ended up being supporting a turnover associated with only 650 million Represents, placing the overall sales value from your combined Borgward auto businesses only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation connected with new and modified types featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") afforded rise to components which all too often did not work, broke down or chop down apart, resulting in massive payments for pre-delivery remediation and/or write-up delivery warranty work that found their way back to the company.The December 1960 Spiegel article hasn't been the only serious open criticism targeting Borgward right now: suddenly stridently negative (in case more succinct) comments also turned up in the influential mass-market Bild classifieds and in television stories. Critical media commentaries additionally appeared concerning large loans to the Borgward Group provided because of the local Landesbank.It is apparent the business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses like auto manufacturing use the expensive machines and tools most efficiently as long as they use them constantly with full capacity, but the car market in Europe inside the 1950s/60s was more seasons than today, with sales diminishing within Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was beyond 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 by the North American dealers with 1960 (and from the 12, 000 delivered to these) 6, 000 might have being taken back following a slump in Us demand. (Borgward was not the only European auto maker hit by the North American slump in demand for imported cars during 1960. In the same calendar year two ships carrying Renault Dauphines were turned back mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
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Towards the end of December 1960 Borgward approached your banker for a further just one million Marks of credit score, the loan to be backed by way of a guarantee from the Bremen local government which initially the Bremen senators decided provide. However, following the flood involving critical press comment the senators withdrew their promise. 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 this senate’s terms on four February 1961, thereby averting the bankruptcy from the business.The Bremen Senate likewise insisted on appointing its nominee as chairman with the company’s supervisory board. The man they decided was Johannes Semler to whom reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated straight into English, does less than full justice on the breadth of Semler’s occupation. He had studied legislation at university and worked initially being a lawyer. The scion of a respected Hamburg political family, in 1945 he received himself been a founding member of the centre-right CSU get together, and was a person in the Bundestag between 1950 and 1953. Despite his Hamburg origins, Semler was by these times based in Munich, with a network of contacts inside Bavarian establishment that probably included fellow CSU politician and also the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the 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 board would, in retrospect, contribute to the hot debate that followed the Borgward bankruptcy.
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On 28 July 1961 Semler, as Chairman of the supervisory board joined the directors with the three companies Borgward, Goliath and Lloyd to instigate proceedings to the establishment of a “Vergleichsverfahren”, which would have provided for the court sanctioned scheme of arrangement enabling the business to continue to trade while as well protecting the interests of creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” get suggested that Semler, for reasons of their own, never had any purpose of allowing the Borgward auto-businesses for you to survive.
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