Borgward is an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in the particular 1960s. The Borgward group developed four brands of automobiles: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's grand son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Oriental investment, and unveiled the firm's first new car throughout over 40 years, the BX7 at the particular 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business get back to 1905 with the business in nearby Varel from the "Hansa Automobilgesellschaft" and the foundation in Bremen itself involving "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economy then confronting Germany, the business failed to prosper and through the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the particular scope of his auto business, and he took control than it.
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The 1st "automobile" Carl Borgward created was the 1924 Blitzkarren (lightning 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 got it for delivery. The Reichspost ordered many for postal service.In 1929, Borgward became the home of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the still three wheeler timber framed synthetic leather bodied 5 or even 7 hp Goliath Leading. Borgward turned his attention to the other businesses and also led the development of the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 as well as in 1939 the name 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 a number of the brand names from businesses he had acquired over time to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase how much steel allocated to his business during a period of austerity and rationing. For many purposes the businesses would be run to be a single entity, but in a business operated by the man to whom delegation failed to come naturally the proliferation of legal entities nonetheless added unhelpful layers of complexity from the 1950s and encouraged a broadening on the range which ultimately proved financially unsustainable while using the sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.One of the 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 most in-demand model and remained in production with the life of the organization. In 1960 the Borgward P100 ended up being 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 to become successful Formula Two power unit (that has been also used by a number of F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such seeing that air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies including Opel and VW took good thing about economies of scale in addition to kept their prices low to get market share, Borgward's cost structure was even higher than necessary for its sizing, as it basically controlled as four tiny independent companies and never implemented such basic price tag reduction strategies as shared development and parts sharing between company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced as being a water-cooled boxer with the front wheel drive, but plagued with problems including water leakage and gearbox snags. Lloyd lost money on the car though it was more expensive when compared with its direct competitors.In 1961, the company was required into liquidation by loan companies. Carl Borgward died inside July 1963, still insisting the company were being technically solvent. This proved to be true within the sense that after the actual creditors were paid completely, there was still 5. 5 million Marks remaining from the business.
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Reports of difficulties at Borgward surfaced within an article that appeared inside Germany's leading news newspaper, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s entrance cover. It was strongly important of Carl Borgward's enterprise approach, and included many on the arguments later advanced to go into detail or justify the firm's demise. The widest range associated with cars from any company in Germany, produced by three until recently operationally autonomous businesses (Borgward, Goliath and Lloyd) seemed to be supporting a turnover associated with only 650 million Marks, placing the overall sales value in the combined Borgward auto companies only in fifth placement among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation associated with new and modified designs featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") presented rise to components which many times did not work, broke down or chop down apart, resulting in massive payments for pre-delivery remediation and/or article delivery warranty work that found their made use of to the company.The December 1960 Spiegel article had not been the only serious open public criticism targeting Borgward at the moment: suddenly stridently negative (in the event more succinct) comments also resulted in in the influential mass-market Bild newspaper and in television reviews. Critical media commentaries likewise appeared concerning large loans towards the Borgward Group provided by the local Landesbank.It is apparent that this 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 whenever they use them constantly with full capacity, but the car market in Europe inside 1950s/60s was more in season than today, with sales diminishing inside Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars right at the end of 1960 was above usual, reflecting ambitious growth strategies, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered by the North American dealers throughout 1960 (and on the 12, 000 delivered to all of them) 6, 000 might have being taken back following a slump in American demand. (Borgward was not the only European auto maker hit with a North American slump in demand for imported cars through 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.
At the conclusion of December 1960 Borgward approached the lender for a further one particular million Marks of credit score, the loan to be backed by way of a guarantee from the Bremen regional government which initially the Bremen senators consented to provide. However, following the flood involving critical press comment this 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 your senate’s terms on four February 1961, thereby averting the bankruptcy in the business.The Bremen Senate additionally insisted on appointing its nominee as chairman in the company’s supervisory board. The man they decided to go with was Johannes Semler with 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 the breadth of Semler’s profession. He had studied regulation at university and worked initially as being a lawyer. The scion of a leading Hamburg political family, in 1945 he had himself been a founding member of the centre-right CSU celebration, and was a member of the Bundestag between 1950 along with 1953. Despite his Hamburg roots, Semler was by these times based in Munich, with a network of contacts in the Bavarian establishment that most likely included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position inside the Bizone. The appointment of Johannes Semler because representative of the Bremen senators to be able to chair the Borgward supervisory panel would, in retrospect, contribute to the dispute that followed the Borgward individual bankruptcy.
On 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 just a court sanctioned scheme of arrangement enabling the company to continue to trade while as well protecting the interests involving creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of his very own, never had any intent of allowing the Borgward auto-businesses to help survive.
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