Borgward is surely an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen inside Germany, ceased operations in your 1960s. The Borgward group produced four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's grand son, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the company's first new car with over 40 years, the BX7 at this 2015 International Motor Show.The origins of Bremen's most significant auto-business get back to 1905 with the place in nearby Varel of the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself regarding "Namag", maker of the Lloyd automobile. 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 with the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a chance greatly to expand your scope of his vehicle business, and he took control than it.
The initial "automobile" Carl Borgward developed was the 1924 Blitzkarren (lightning cart), a sort of teeny three-wheeled van with 2 hp (1. 5 kW), which was an enormous success on the market gap it filled. Traders with a small budget got it for delivery. The Reichspost ordered most of them for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the however three wheeler timber presented synthetic leather bodied 5 as well as 7 hp Goliath Founder. Borgward turned his care about the other businesses as well as led the development of the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 in addition to 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 a few of the brand names from companies he had acquired through the years to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase the number of steel allocated to his business at a time of austerity and rationing. For many purposes the lenders would be run as being a single entity, but in a business operated by way of man to whom delegation wouldn't come naturally the growth of legal entities even so added unhelpful layers of complexity throughout the 1950s and encouraged a broadening on the range which eventually proved financially unsustainable while using sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.One of several top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started out in 1954. The Isabella would become Borgward's most popular model and remained in production for the life of the company. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers in the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (which was also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such because air suspension and automatic transmission, the company had trouble competing in the market. While larger companies like Opel and VW took good thing about economies of scale and kept their prices low to find market share, Borgward's cost structure was even higher than necessary for its sizing, as it basically managed as four tiny independent companies and do not implemented such basic price tag reduction strategies as joint development and parts sharing between your company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced being a water-cooled boxer with entrance wheel drive, but plagued with problems such as water leakage and gearbox glitches. Lloyd lost money on the car although it was more expensive than its direct competitors.In 1961, the company was forced into liquidation by loan companies. Carl Borgward died in July 1963, still insisting the company were being technically solvent. This proved to be true in the sense that after your creditors were paid fully, there was still 5. 5 million Marks remaining from the business.
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Studies of difficulties at Borgward surfaced within the article that appeared within Germany's leading news publication, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted by using 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 spellout or justify the business's demise. The widest range associated with cars from any manufacturer in Germany, produced by three until finally recently operationally autonomous businesses (Borgward, Goliath and Lloyd) had been supporting a turnover of only 650 million Grades, placing the overall sales value in the combined Borgward auto firms only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation involving new and modified versions featuring adventurous, but under-developed technological improvements ("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 article delivery warranty work that found their made use of to the company.The December 1960 Spiegel article wasn't the only serious public criticism targeting Borgward currently: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild newspaper and in television studies. Critical media commentaries also appeared concerning large loans for the Borgward Group provided because of the local Landesbank.It is apparent that this business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses like auto manufacturing use their expensive machines and tools most efficiently when they use them constantly at full capacity, but the car market in Europe within the 1950s/60s was more seasonal than today, with sales diminishing within Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars at the end of 1960 was higher than usual, reflecting ambitious growth ideas, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered from the North American dealers with 1960 (and from the 12, 000 delivered to all of them) 6, 000 might have to be taken back following a slump in Us demand. (Borgward was not the sole European auto maker hit by way of a North American slump widely used for imported cars during 1960. In the same season 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.
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Right at the end of December 1960 Borgward approached your banker for a further a single million Marks of credit, the loan to be backed by a guarantee from the Bremen local government which initially the Bremen senators opted for provide. However, following the flood associated with critical press comment this senators withdrew their assurance. They now required Carl Borgward to pledge the company 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 your senate’s terms on some February 1961, thereby averting the bankruptcy on the business.The Bremen Senate also insisted on appointing its very own nominee as chairman on the company’s supervisory board. The man they chose was Johannes Semler with whom reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice to the breadth of Semler’s job. He had studied rules at university and worked initially being a lawyer. The scion of a number one Hamburg political family, in 1945 he got himself been a founding member of the centre-right CSU party, and was a person in the Bundestag between 1950 and also 1953. Despite his Hamburg beginning, Semler was by these times based in Munich, with a network of contacts within the Bavarian establishment that possibly included fellow CSU politician and also 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 for the reason that representative of the Bremen senators to be able to chair the Borgward supervisory board would, in retrospect, contribute to the hot debate that followed the Borgward chapter 7.
In 28 July 1961 Semler, as Chairman of the actual supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings for the establishment of a “Vergleichsverfahren”, which would have provided for just a court sanctioned scheme of arrangement enabling this company to continue to trade while at the same time protecting the interests regarding creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath organizations 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 objective of allowing the Borgward auto-businesses for you to survive.
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