Borgward is usually an automobile manufacturer originally created by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in this 1960s. The Borgward group created four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's son, Christian Borgward, together with his partner Karlheinz L. Knöss, with assistance from China investment, and unveiled the corporation's first new car within over 40 years, the BX7 at this 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business go back to 1905 with the establishment in nearby Varel of the "Hansa Automobilgesellschaft" and the muse in Bremen itself regarding "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 status then confronting Germany, the business failed to prosper and by the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the possibility greatly to expand this scope of his automotive business, and he took control from it.
The very first "automobile" Carl Borgward created was the 1924 Blitzkarren (super 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 for delivery. The Reichspost ordered most 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 & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 as well as 7 hp Goliath Founder. Borgward turned his awareness of the other businesses along with led the development with the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 along with in 1939 the brand was shortened to Borgward 2000. The 2000 model was accompanied by 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 companies he had acquired in the past to found three different companies: Borgward, Goliath and Lloyd. This was intended to increase how much steel allocated to his business at a time of austerity and rationing. For many purposes the lenders would be run as a single entity, but in a business operated by the man to whom delegation failed to come naturally the growth of legal entities however added unhelpful layers of complexity throughout the 1950s and encouraged a broadening of the range which finally proved financially unsustainable while using the sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.On the list of top engineers at Borgward from 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 that life of the business. In 1960 the Borgward P100 had been introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers from the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (which has been also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such while air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies just like Opel and VW took selling point of economies of scale and also kept their prices low to get market share, Borgward's cost structure was even more than necessary for its size, as it basically controlled as four tiny independent companies and never implemented such basic expense reduction strategies as combined development and parts sharing involving the company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced as a water-cooled boxer with entry wheel drive, but plagued with problems for instance water leakage and gearbox mistakes. 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 credit card companies. Carl Borgward died within July 1963, still insisting the company had been technically solvent. This proved to be true from the sense that after the actual creditors were paid fully, there was still 4. 5 million Marks left over from the business.
Stories of difficulties at Borgward surfaced within the article that appeared within Germany's leading news mag, “Der Spiegel” on 15 December 1960”. The very long, detailed, and in places repetitive Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s top cover. It was strongly critical of Carl Borgward's company approach, and included many with the arguments later advanced to spellout or justify the businesses demise. The widest range involving cars from any producer in Germany, produced by three until recently operationally autonomous businesses (Borgward, Goliath and Lloyd) seemed to be supporting a turnover involving only 650 million Signifies, placing the overall sales value in the combined Borgward auto businesses 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 involving new and modified products featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") afforded rise to components which too often did not work, broke down or droped apart, resulting in massive expenses for pre-delivery remediation and/or write-up delivery warranty work that found their in the past to the company.The December 1960 Spiegel article had not been the only serious open public criticism targeting Borgward at this time: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild newspaper and in television reports. Critical media commentaries in addition appeared concerning large loans for the Borgward Group provided from the local Landesbank.It is apparent the business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses such as auto manufacturing use his or her expensive machines and tools most efficiently whenever they use them constantly with full capacity, but the car market in Europe from the 1950s/60s was more in season than today, with sales diminishing throughout Winter, then peaking in early summer months: Borgward’s inventory of unsold cars at the end of 1960 was more than usual, reflecting ambitious growth strategies, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered because of the North American dealers in 1960 (and on the 12, 000 delivered to all of them) 6, 000 might have being taken back following a slump in United states demand. (Borgward was not the one European auto maker hit by way of a North American slump widely used for imported cars through 1960. In the same yr two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
Towards the end of December 1960 Borgward approached the lender for a further one million Marks of credit rating, the loan to be backed by the guarantee from the Bremen local government which initially the Bremen senators opted for provide. However, following the flood associated with critical press comment the particular senators withdrew their ensure. They now required Carl Borgward to pledge this company 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 5 February 1961, thereby averting the bankruptcy from the business.The Bremen Senate additionally insisted on appointing its own nominee as chairman on the company’s supervisory board. The man they select was Johannes Semler which reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice towards breadth of Semler’s occupation. He had studied regulation at university and worked initially as a lawyer. The scion of a number one Hamburg political family, in 1945 he experienced himself been a founding member of the centre-right CSU celebration, and was a person in the Bundestag between 1950 in addition to 1953. Despite his Hamburg roots, Semler was by this time around based in Munich, with a network of contacts inside Bavarian establishment that probably included fellow CSU politician plus the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position within the Bizone. The appointment of Johannes Semler since the representative of the Bremen senators to help chair the Borgward supervisory table would, in retrospect, contribute to the debate that followed the Borgward chapter 7.
In 28 July 1961 Semler, as Chairman of your supervisory board joined the directors with the three companies Borgward, Goliath and Lloyd to instigate proceedings for that establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while at the same time protecting the interests involving creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of his very own, never had any objective of allowing the Borgward auto-businesses to help survive.
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