Borgward is usually an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in your 1960s. The Borgward group produced four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has due to the fact 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 within over 40 years, the BX7 at the particular 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business get back on 1905 with the place in nearby Varel from the "Hansa Automobilgesellschaft" and the building blocks in Bremen itself involving "Namag", maker of the Lloyd auto. These two businesses merged in 1914 in order 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 chapter 7. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the possibility greatly to expand the actual scope of his automotive business, and he took control from it.
The first "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo cart), a sort of teeny three-wheeled van with a couple of hp (1. 5 kW), which was an enormous success already in 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 representative of Hansa Lloyd AG having had time 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 or even 7 hp Goliath Pioneer. Borgward turned his awareness of the other businesses as well as led the development of the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 and also 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 many of the brand names from corporations he had acquired over time to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business at the same time of austerity and rationing. For many purposes the companies would be run as a single entity, but in a business operated by a man to whom delegation did not come naturally the growth of legal entities nonetheless added unhelpful layers of complexity through the 1950s and encouraged a broadening with the range which eventually proved financially unsustainable with the sales volumes achievable. In 1949 company presented the Borgward Hansa 1500.One of the top engineers at Borgward through 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started in 1954. The Isabella would become Borgward's most widely used model and remained in production to the 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 in the late 1950s, with the 16-valve engine from these being a successful Formula Two power unit (which has been also used by a number of F1 privateers in 1961).Although Borgward pioneered technical novelties in the German market such because air suspension and automatic transmission, the company had trouble competing out there. While larger companies just like Opel and VW took benefit of economies of scale in addition to kept their prices low to get market share, Borgward's cost structure was even above necessary for its size, as it basically operated as four tiny independent companies and not implemented such basic cost reduction strategies as combined development and parts sharing between your company's makes. Borgward suffered quality problems likewise. 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 even though it was more expensive compared to its direct competitors.In 1961, the company was compelled into liquidation by collectors. Carl Borgward died throughout July 1963, still insisting the company were being technically solvent. This proved to be true inside sense that after this creditors were paid entirely, there was still some. 5 million Marks left from the business.
Reviews of difficulties at Borgward surfaced in an article that appeared within Germany's leading news mag, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s front cover. It was strongly essential of Carl Borgward's small business approach, and included many with the arguments later advanced to describe or justify the business's demise. The widest range involving cars from any supplier in Germany, produced by three until recently operationally autonomous businesses (Borgward, Goliath and Lloyd) had been supporting a turnover involving only 650 million Signifies, placing the overall sales value in the combined Borgward auto organizations only in fifth place among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation of new and modified models featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") provided rise to components which many times 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 way back to the company.The December 1960 Spiegel article had not been the only serious general public criticism targeting Borgward presently: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild paper and in television stories. Critical media commentaries also appeared concerning large loans on the Borgward Group provided because of the local Landesbank.It is apparent that the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses including auto manufacturing use their own expensive machines and tools most efficiently whenever they use them constantly from full capacity, but the car market in Europe inside the 1950s/60s was more periodic than today, with sales diminishing in Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars towards the end of 1960 was beyond usual, reflecting ambitious growth programs, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered through the North American dealers inside 1960 (and with the 12, 000 delivered to these individuals) 6, 000 might have to get 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 in the course of 1960. In the same yr two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
At the conclusion of December 1960 Borgward approached the financial institution for a further one million Marks of credit ratings, the loan to be backed by the guarantee from the Bremen regional government which initially the Bremen senators consented to provide. However, following the flood regarding 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 this senate’s terms on four February 1961, thereby averting the bankruptcy on the business.The Bremen Senate furthermore insisted on appointing a nominee as chairman in the company’s supervisory board. The man they decided to go with was Johannes Semler who reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice towards breadth of Semler’s occupation. He had studied regulation at university and worked initially as being a lawyer. The scion of a top Hamburg political family, in 1945 he received himself been a founding member of the centre-right CSU bash, and was a member of the Bundestag between 1950 as well as 1953. Despite his Hamburg origins, Semler was by this time around based in Munich, with a network of contacts in the Bavarian establishment that likely included fellow CSU politician and also the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a top administrative position inside Bizone. The appointment of Johannes Semler as the representative of the Bremen senators to be able to chair the Borgward supervisory aboard would, in retrospect, contribute to the debate that followed the Borgward individual bankruptcy.
About 28 July 1961 Semler, as Chairman of the supervisory board joined the directors from the three companies Borgward, Goliath and Lloyd to instigate proceedings to the establishment of a “Vergleichsverfahren”, which would have provided for just a court sanctioned scheme of arrangement enabling the company to continue to trade while concurrently protecting the interests regarding creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath companies were declared bankrupt, followed in November through the Lloyd business. Subsequent “conspiracy theorists” have got suggested that Semler, for reasons of her own, never had any intention of allowing the Borgward auto-businesses to help survive.
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