Borgward is surely an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in your 1960s. The Borgward group created four brands of autos: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's grand son, Christian Borgward, together with his partner Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the corporation's first new car with over 40 years, the BX7 at your 2015 International Motor Indicate.The origins of Bremen's most significant auto-business get back to 1905 with the business 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 create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial status then confronting Germany, the business failed to prosper and because of the late 1920s faced chapter 7. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a chance greatly to expand the scope of his automobile business, and he took control of it.
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The very first "automobile" Carl Borgward created was the 1924 Blitzkarren (super cart), a sort of small three-wheeled van with two hp (1. 5 kW), which was an enormous success 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 had the oppertunity to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 as well as 7 hp Goliath Pioneer. Borgward turned his focus on the other businesses and also led the development in the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 and in 1939 the name was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from businesses he had acquired over the years to found three distinct companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business at the same time of austerity and rationing. For many purposes the companies would be run being a single entity, but in a business operated by a man to whom delegation failed to come naturally the spreading of legal entities on the other hand added unhelpful layers of complexity with the 1950s and encouraged a broadening of the range which finally proved financially unsustainable while using sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.Among the top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's hottest model and remained in production for your life of the business. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a distinct 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (that is also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such since air suspension and automated transmission, the company had trouble competing available on the market. While larger companies similar to Opel and VW took selling point of economies of scale and also kept their prices low to find market share, Borgward's cost structure was even more than necessary for its dimensions, as it basically handled as four tiny independent companies and do not implemented such basic cost reduction strategies as articulation development and parts sharing between the company's makes. Borgward suffered quality problems at the same time. The Lloyd Arabella was technically advanced being a water-cooled boxer with entrance wheel drive, but plagued with problems for example water leakage and gearbox errors. Lloyd lost money on the car though it was more expensive compared to its direct competitors.In 1961, the company was pushed into liquidation by collectors. Carl Borgward died within July 1963, still insisting the company were being technically solvent. This proved to be true inside sense that after the actual creditors were paid completely, there was still some. 5 million Marks left over from the business.
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Stories of difficulties at Borgward surfaced in an article that appeared inside Germany's leading news mag, “Der Spiegel” on 15 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted with a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly vital of Carl Borgward's organization approach, and included many on the arguments later advanced to spellout or justify the businesses demise. The widest range of cars from any maker in Germany, produced by three until eventually recently operationally autonomous corporations (Borgward, Goliath and Lloyd) ended up being supporting a turnover associated with only 650 million Represents, placing the overall sales value from the combined Borgward auto corporations only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation regarding new and modified products featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") afforded rise to components which excessively did not work, broke down or fell into apart, resulting in massive costs for pre-delivery remediation and/or article delivery warranty work that found their in the past to the company.The December 1960 Spiegel article has not been the only serious open criticism targeting Borgward presently: suddenly stridently negative (in the event that more succinct) comments also resulted in in the influential mass-market Bild classifieds and in television stories. Critical media commentaries in addition appeared concerning large loans for the Borgward Group provided with the local Landesbank.It is apparent which the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses for instance auto manufacturing use his or her expensive machines and tools most efficiently when they use them constantly in full capacity, but the car market in Europe inside the 1950s/60s was more seasonal than today, with sales diminishing with Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars right at the end of 1960 was higher than usual, reflecting ambitious growth strategies, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered because of the North American dealers with 1960 (and with the 12, 000 delivered to these individuals) 6, 000 might have for being taken back following a slump in American demand. (Borgward was not the only European auto maker hit with a North American slump popular for imported cars while in 1960. In the same 12 months two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
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Towards the end of December 1960 Borgward approached the financial institution for a further 1 million Marks of credit rating, the loan to be backed by the guarantee from the Bremen regional government which initially the Bremen senators agreed to provide. However, following the flood regarding critical press comment the senators withdrew their guarantee. 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 inside a still hostile media, Borgward agreed to the actual senate’s terms on four February 1961, thereby averting the bankruptcy of the business.The Bremen Senate additionally insisted on appointing its own nominee as chairman from the company’s supervisory board. The man they decided to go with was Johannes Semler who reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice for the breadth of Semler’s occupation. He had studied legislations at university and worked initially as being a lawyer. The scion of a top Hamburg political family, in 1945 he acquired himself been a founding person in the centre-right CSU bash, and was a person in the Bundestag between 1950 and also 1953. Despite his Hamburg beginning, Semler was by on this occasion based in Munich, with a network of contacts within the Bavarian establishment that probably included fellow CSU politician plus the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position inside the Bizone. The appointment of Johannes Semler as the representative of the Bremen senators to chair the Borgward supervisory mother board would, in retrospect, contribute to the debate that followed the Borgward bankruptcy.
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In 28 July 1961 Semler, as Chairman of the supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling the organization to continue to trade while concurrently protecting the interests connected with creditors. [16] Two months later on, however, in September 1961, the Borgward and Goliath companies were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of his or her own, never had any intention of allowing the Borgward auto-businesses for you to survive.
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