Borgward is definitely an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in your 1960s. The Borgward group made four brands of autos: Borgward, Hansa, Goliath and Lloyd.The marque has considering that been revived by Carl Borgward's son, Christian Borgward, together with his spouse Karlheinz L. Knöss, with assistance from China investment, and unveiled the company's first new car within over 40 years, the BX7 at the actual 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business return to 1905 with the establishment in nearby Varel of the "Hansa Automobilgesellschaft" and the walls in Bremen itself regarding "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to form the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economic 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 the opportunity greatly to expand the scope of his car business, and he took control from it.
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The initial "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo cart), a sort of very small three-wheeled van with two hp (1. 5 kW), which was an enormous success available in the market gap it filled. Traders with a small budget purchased for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having had the oppertunity to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the still three wheeler timber framed synthetic leather bodied 5 or 7 hp Goliath Founder. Borgward turned his focus on the other businesses as well as led the development in the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 along with in 1939 the identify was shortened to Borgward 2000. The 2000 model was followed by the Borgward 2300that remained in production until 1942.After World War II, in 1946 Carl Borgward used some of the brand names from businesses he had acquired in recent times to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business each time of austerity and rationing. For many purposes the lenders would be run being a single entity, but in a business operated by way of a man to whom delegation failed to come naturally the spreading of legal entities on the other hand added unhelpful layers of complexity throughout the 1950s and encouraged a broadening with the range which in the end proved financially unsustainable using the sales volumes achievable. In 1949 company introduced the Borgward Hansa 1500.One of the top engineers at Borgward by 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most in-demand model and remained in production to the life of the firm. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a 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 has been also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such while air suspension and automatic transmission, the company had trouble competing out there. While larger companies like Opel and VW took benefit of economies of scale and also kept their prices low to gain market share, Borgward's cost structure was even beyond necessary for its measurement, as it basically controlled as four tiny independent companies and not implemented such basic expense reduction strategies as articulation development and parts sharing involving the company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced as being a water-cooled boxer with front wheel drive, but plagued with problems for example water leakage and gearbox errors. Lloyd lost money on the car though it was more expensive when compared with its direct competitors.In 1961, the company was compelled into liquidation by creditors. Carl Borgward died with July 1963, still insisting the company were being technically solvent. This proved to be true in the sense that after the actual creditors were paid in full, there was still some. 5 million Marks left from the business.
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Accounts of difficulties at Borgward surfaced within an article that appeared inside Germany's leading news magazine, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted with a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly essential of Carl Borgward's small business approach, and included many on the arguments later advanced to go into detail or justify the firm's demise. The widest range of cars from any supplier in Germany, produced by three until eventually recently operationally autonomous organizations (Borgward, Goliath and Lloyd) was supporting a turnover of only 650 million Scars, placing the overall sales value in the combined Borgward auto businesses only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation regarding new and modified types featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") provided rise to components which excessively did not work, broke down or fell into apart, resulting in massive costs for pre-delivery remediation and/or post delivery warranty work that found their made use of to the company.The December 1960 Spiegel article wasn't the only serious public criticism targeting Borgward currently: suddenly stridently negative (in case more succinct) comments also resulted in in the influential mass-market Bild magazine and in television accounts. Critical media commentaries additionally appeared concerning large loans to the Borgward Group provided because of the local Landesbank.It is apparent how the business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses for instance auto manufacturing use the expensive machines and tools most efficiently if they use them constantly at full capacity, but the car market in Europe in the 1950s/60s was more in season than today, with sales diminishing with Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars towards the end of 1960 was more than usual, reflecting ambitious growth ideas, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered because of the North American dealers within 1960 (and in the 12, 000 delivered to them) 6, 000 might have being taken back following a slump in United states demand. (Borgward was not the only real European auto maker hit by way of North American slump popular for imported cars in the course of 1960. In the same season two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
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Towards the end of December 1960 Borgward approached the financial institution for a further one particular million Marks of credit ratings, the loan to be backed by a guarantee from the Bremen local government which initially the Bremen senators decided to provide. However, following the flood regarding critical press comment your senators withdrew their assurance. They now required Carl Borgward to pledge the organization itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported inside a still hostile media, Borgward agreed to your senate’s terms on 5 February 1961, thereby averting the bankruptcy with the business.The Bremen Senate likewise insisted on appointing a unique nominee as chairman on the company’s supervisory board. The man they decided was Johannes Semler which reports generally describe to be a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice towards the breadth of Semler’s career. He had studied rules at university and worked initially being 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 party, and was a person in the Bundestag between 1950 and also 1953. Despite his Hamburg origins, Semler was by this time around based in Munich, with a network of contacts in the Bavarian establishment that almost certainly included fellow CSU politician and the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position from the Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators in order to chair the Borgward supervisory panel would, in retrospect, contribute to the controversy that followed the Borgward individual bankruptcy.
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Upon 28 July 1961 Semler, as Chairman of the particular supervisory board joined the directors of the three companies Borgward, Goliath and Lloyd to instigate proceedings to the establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling the organization to continue to trade while simultaneously protecting the interests involving creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of her own, never had any intention of allowing the Borgward auto-businesses to be able to survive.
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