Borgward can be an automobile manufacturer originally created by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the particular 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 partner Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the company's first new car inside over 40 years, the BX7 at the particular 2015 International Motor Display.The origins of Bremen's most significant auto-business get back to 1905 with the institution in nearby Varel in the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself regarding "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial crisis then confronting Germany, the business failed to prosper and from the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the possibility greatly to expand the particular scope of his auto business, and he took control of it.
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The primary "automobile" Carl Borgward designed was the 1924 Blitzkarren (super cart), a sort of teeny three-wheeled van with 2 hp (1. 5 kW), which was an enormous success available in the market gap it filled. Traders with a small budget ordered for delivery. The Reichspost ordered some of them for postal service.In 1929, Borgward became the director of Hansa Lloyd AG having had the oppertunity to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had nowadays evolved into the however three wheeler timber presented synthetic leather bodied 5 or even 7 hp Goliath Leader. Borgward turned his attention to the other businesses in addition to led the development from the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 and also in 1939 the title was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that remained 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 the past to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase how much steel allocated to his business at the same time of austerity and rationing. For many purposes the firms would be run as being a single entity, but in a business operated by a man to whom delegation would not come naturally the spreading of legal entities even so added unhelpful layers of complexity over the 1950s and encouraged a broadening from the range which ultimately proved financially unsustainable while using the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.Among the top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's most favored model and remained in production to the life of the organization. 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 learning to be a successful Formula Two power unit (that has been also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such while air suspension and computerized transmission, the company had trouble competing in the market. While larger companies including Opel and VW took advantage of economies of scale and kept their prices low to get market share, Borgward's cost structure was even higher than necessary for its sizing, as it basically managed as four tiny independent companies rather than implemented such basic charge reduction strategies as shared development and parts sharing relating to the company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced as 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 just about the most was more expensive when compared with its direct competitors.In 1961, the company was required into liquidation by lenders. Carl Borgward died inside July 1963, still insisting the company was technically solvent. This proved to be true inside the sense that after your creditors were paid entirely, there was still 5. 5 million Marks left from the business.
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Reviews of difficulties at Borgward surfaced in the article that appeared throughout Germany's leading news journal, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted through a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly essential of Carl Borgward's business approach, and included many with the arguments later advanced to describe 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 companies (Borgward, Goliath and Lloyd) had been supporting a turnover regarding only 650 million Scars, placing the overall sales value from your combined Borgward auto firms only in fifth place among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation of new and modified types featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") gave rise to components which excessively did not work, broke down or dropped apart, resulting in massive costs for pre-delivery remediation and/or write-up delivery warranty work that found their long ago to the company.The December 1960 Spiegel article was not the only serious general public criticism targeting Borgward at the moment: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild paper and in television studies. Critical media commentaries additionally appeared concerning large loans towards Borgward Group provided because of the local Landesbank.It is apparent the business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses for example auto manufacturing use their expensive machines and tools most efficiently if they use them constantly with full capacity, but the car market in Europe from the 1950s/60s was more seasonal than today, with sales diminishing with Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was above usual, reflecting ambitious growth options, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered because of the North American dealers within 1960 (and from the 12, 000 delivered to all of them) 6, 000 might have to get taken back following a slump in Us demand. (Borgward was not the sole European auto maker hit by the North American slump sought after for imported cars throughout 1960. In the same season two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
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At the end of December 1960 Borgward approached your banker for a further a single million Marks of credit score, the loan to be backed by a guarantee from the Bremen regional government which initially the Bremen senators decided provide. However, following the flood regarding critical press comment the particular senators withdrew their guarantee. 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 within a still hostile media, Borgward agreed to your senate’s terms on four February 1961, thereby averting the bankruptcy in the business.The Bremen Senate furthermore insisted on appointing its nominee as chairman in the company’s supervisory board. The man they decided to go with was Johannes Semler with whom reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice on the breadth of Semler’s profession. He had studied rules at university and worked initially to be 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 person in the Bundestag between 1950 and also 1953. Despite his Hamburg beginning, Semler was by now based in Munich, with a network of contacts inside Bavarian establishment that most likely included fellow CSU politician plus the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position inside Bizone. The appointment of Johannes Semler since the representative of the Bremen senators for you to chair the Borgward supervisory board 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 of the three companies Borgward, Goliath and Lloyd to instigate proceedings to the establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while as well protecting the interests connected with creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” have got suggested that Semler, for reasons of their own, never had any objective of allowing the Borgward auto-businesses to help survive.
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