Borgward is an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in the 1960s. The Borgward group generated four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grandson, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the corporation's first new car inside over 40 years, the BX7 at the particular 2015 International Motor Indicate.The origins of Bremen's most significant auto-business get back on 1905 with the establishment in nearby Varel with the "Hansa Automobilgesellschaft" and the walls in Bremen itself involving "Namag", maker of the Lloyd vehicle. These two businesses merged in 1914 to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economic situation then confronting Germany, the business failed to prosper and because of the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the scope of his automobile business, and he took control of it.
The first "automobile" Carl Borgward developed was the 1924 Blitzkarren (lightning cart), a sort of teeny three-wheeled van with two 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 most of them for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the even now three wheeler timber presented synthetic leather bodied 5 or maybe 7 hp Goliath Leader. Borgward turned his attention to the other businesses along with led the development of the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 in addition to in 1939 the label was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from corporations he had acquired in recent times to found three different companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business during a period of austerity and rationing. For many purposes the firms would be run as being a single entity, but in a business operated with a man to whom delegation did not come naturally the spreading of legal entities on the other hand added unhelpful layers of complexity throughout the 1950s and encouraged a broadening of the range which ultimately proved financially unsustainable using the sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.On the list of top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most popular model and remained in production for your life of the firm. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a brand of 1500 cc sports racers inside late 1950s, with the 16-valve engine from these being a successful Formula Two power unit (which was also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such since air suspension and intelligent transmission, the company had trouble competing available. While larger companies such as Opel and VW took selling point of economies of scale as well as kept their prices low to gain market share, Borgward's cost structure was even higher than necessary for its dimensions, as it basically handled as four tiny independent companies and do not implemented such basic price reduction strategies as joint development and parts sharing between the company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced like a water-cooled boxer with entry wheel drive, but plagued with problems like water leakage and gearbox secrets. Lloyd lost money on the car community . was more expensive when compared with its direct competitors.In 1961, the company was forced into liquidation by collectors. Carl Borgward died with July 1963, still insisting the company had been technically solvent. This proved to be true within the sense that after the creditors were paid 100 %, there was still 4. 5 million Marks remaining from the business.
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Studies of difficulties at Borgward surfaced within the article that appeared throughout Germany's leading news magazine, “Der Spiegel” on 15 December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted with a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly crucial of Carl Borgward's enterprise approach, and included many from the arguments later advanced to go into detail or justify the business's demise. The widest range involving cars from any maker in Germany, produced by three right up until recently operationally autonomous corporations (Borgward, Goliath and Lloyd) seemed to be supporting a turnover involving only 650 million Scars, placing the overall sales value through the combined Borgward auto businesses only in fifth position among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation connected with new and modified products featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") offered rise to components which all too often did not work, broke down or fell into apart, resulting in massive charges for pre-delivery remediation and/or submit delivery warranty work that found their made use of to the company.The December 1960 Spiegel article hasn't been the only serious open criticism targeting Borgward currently: suddenly stridently negative (when more succinct) comments also resulted in in the influential mass-market Bild newspapers and in television reviews. Critical media commentaries likewise appeared concerning large loans to the Borgward Group provided from the local Landesbank.It is apparent how the business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses including auto manufacturing use their own expensive machines and tools most efficiently whenever they use them constantly at full capacity, but the car market in Europe inside 1950s/60s was more in season than today, with sales diminishing throughout Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars by the end of 1960 was more than usual, reflecting ambitious growth plans, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered through the North American dealers inside 1960 (and from the 12, 000 delivered to these) 6, 000 might have to become taken back following a slump in American demand. (Borgward was not the only real European auto maker hit with a North American slump successful for imported cars while in 1960. In the same 12 months two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
At the end of December 1960 Borgward approached your banker for a further one million Marks of credit rating, the loan to be backed by way of guarantee from the Bremen local government which initially the Bremen senators consented to provide. However, following the flood connected with critical press comment your senators withdrew their assurance. 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 within a still hostile media, Borgward agreed to the actual senate’s terms on 4 February 1961, thereby averting the bankruptcy with the business.The Bremen Senate furthermore insisted on appointing its very own nominee as chairman of the company’s supervisory board. The man they decided to go with was Johannes Semler to whom reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice to the breadth of Semler’s profession. He had studied legislations at university and worked initially as a lawyer. The scion of a leading Hamburg political family, in 1945 he received himself been a founding member of the centre-right CSU get together, and was a member of the Bundestag between 1950 in addition to 1953. Despite his Hamburg roots, Semler was by this time based in Munich, with a network of contacts in the Bavarian establishment that probably included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a very top administrative position within the Bizone. The appointment of Johannes Semler as 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.
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About 28 July 1961 Semler, as Chairman of the particular supervisory board joined the directors in 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 business enterprise to continue to trade while as well protecting the interests regarding creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” get suggested that Semler, for reasons of his or her own, never had any objective of allowing the Borgward auto-businesses to survive.
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