Borgward is an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the 1960s. The Borgward group created four brands of autos: 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 partner Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the businesses first new car inside over 40 years, the BX7 at your 2015 International Motor Indicate.The origins of Bremen's most significant auto-business return to 1905 with the organization in nearby Varel with the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself involving "Namag", maker of the Lloyd car. 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 through the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand your scope of his vehicle business, and he took control of the usb ports.
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The 1st "automobile" Carl Borgward created was the 1924 Blitzkarren (super cart), a sort of very small three-wheeled van with 3 hp (1. 5 kW), which was an enormous success available 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 home of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the nonetheless three wheeler timber presented synthetic leather bodied 5 or perhaps 7 hp Goliath Leading. Borgward turned his awareness of the other businesses as well as led the development with the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 along with in 1939 the label was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a few of the brand names from firms he had acquired through the years to found three different companies: Borgward, Goliath and Lloyd. This was intended to increase the amount of steel allocated to his business during a period of austerity and rationing. For many purposes the companies would be run as a single entity, but in a business operated by the man to whom delegation didn't come naturally the proliferation of legal entities nonetheless added unhelpful layers of complexity throughout the 1950s and encouraged a broadening on the range which in the long run proved financially unsustainable with the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.One of the 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 in-demand model and remained in production for that life of the corporation. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (which has been also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such seeing that air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies just like Opel and VW took good thing about economies of scale along with kept their prices low to find market share, Borgward's cost structure was even beyond necessary for its sizing, as it basically operated as four tiny independent companies and do not implemented such basic price tag reduction strategies as joint development and parts sharing relating to the company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced as a water-cooled boxer with the front wheel drive, but plagued with problems including water leakage and gearbox errors. Lloyd lost money on the car community . was more expensive than its direct competitors.In 1961, the company was compelled into liquidation by credit card companies. Carl Borgward died throughout 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 completely, there was still 4. 5 million Marks left from the business.
Reports of difficulties at Borgward surfaced in an article that appeared within Germany's leading news magazine, “Der Spiegel” on 14 December 1960”. The very long, detailed, and in places repetitive Spiegel article was highlighted through a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly important of Carl Borgward's organization approach, and included many on the arguments later advanced to spellout or justify the corporation's demise. The widest range connected with cars from any supplier in Germany, produced by three until eventually recently operationally autonomous businesses (Borgward, Goliath and Lloyd) has been supporting a turnover of only 650 million Scars, placing the overall sales value in the combined Borgward auto corporations only in fifth placement among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation of new and modified products featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") afforded rise to components which many times did not work, broke down or chop down apart, resulting in massive bills for pre-delivery remediation and/or post delivery warranty work that found their sources that are to the company.The December 1960 Spiegel article wasn't the only serious open criticism targeting Borgward currently: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild magazine and in television stories. Critical media commentaries likewise appeared concerning large loans towards the Borgward Group provided because of the local Landesbank.It is apparent which the business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses like auto manufacturing use the expensive machines and tools most efficiently whenever they use them constantly at full capacity, but the car market in Europe within the 1950s/60s was more seasons than today, with sales diminishing with Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars right at the end of 1960 was more than usual, reflecting ambitious growth plans, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered because of the North American dealers throughout 1960 (and with the 12, 000 delivered to these) 6, 000 might have to get taken back following a slump in United states demand. (Borgward was not really the only European auto maker hit by the North American slump successful for imported cars throughout 1960. In the same 12 months two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
By the end of December 1960 Borgward approached the financial institution for a further one particular million Marks of credit score, the loan to be backed by the 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 corporation itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported in a still hostile media, Borgward agreed to the senate’s terms on 5 February 1961, thereby averting the bankruptcy on the business.The Bremen Senate additionally insisted on appointing a unique nominee as chairman of the company’s supervisory board. The man they decided was Johannes Semler to whom reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated directly into English, does less than full justice towards breadth of Semler’s profession. He had studied regulation at university and worked initially to be a lawyer. The scion of a number one Hamburg political family, in 1945 he received himself been a founding person in the centre-right CSU get together, and was a person in the Bundestag between 1950 in addition to 1953. Despite his Hamburg origins, Semler was by on this occasion based in Munich, with a network of contacts inside the Bavarian establishment that possibly included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a top administrative position within the Bizone. The appointment of Johannes Semler since the representative of the Bremen senators to help chair the Borgward supervisory panel would, in retrospect, contribute to the conflict that followed the Borgward personal bankruptcy.
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In 28 July 1961 Semler, as Chairman of this 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 a court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while while doing so protecting the interests associated with creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath companies were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of his own, never had any intent of allowing the Borgward auto-businesses for you to survive.
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