Borgward is usually an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen inside Germany, ceased operations in the 1960s. The Borgward group developed four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grandson, Christian Borgward, together with his spouse Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the company's first new car within over 40 years, the BX7 at this 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business go back to 1905 with the organization in nearby Varel from the "Hansa Automobilgesellschaft" and the walls in Bremen itself regarding "Namag", maker of the Lloyd car or truck. 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 with the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator from 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 computer.
The primary "automobile" Carl Borgward developed was the 1924 Blitzkarren (lightning cart), a sort of little three-wheeled van with 2 hp (1. 5 kW), which was an enormous success already in the market gap it filled. Traders with a small budget got it for delivery. The Reichspost ordered many for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the still three wheeler timber presented synthetic leather bodied 5 or maybe 7 hp Goliath Pioneer. Borgward turned his care about the other businesses in addition to led the development of the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 and also in 1939 the brand was shortened to Borgward 2000. The 2000 model was followed by the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used many of the brand names from companies he had acquired over the years to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business at a time of austerity and rationing. For many purposes the companies would be run to be a single entity, but in a business operated by way of man to whom delegation failed to come naturally the growth of legal entities even so added unhelpful layers of complexity with the 1950s and encouraged a broadening with the range which finally proved financially unsustainable using the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of many top engineers at Borgward from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun 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 has been 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 is also used by a number of F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such while air suspension and intelligent transmission, the company had trouble competing out there. While larger companies including Opel and VW took advantage of economies of scale in addition to kept their prices low to achieve market share, Borgward's cost structure was even greater than necessary for its measurement, as it basically run as four tiny independent companies rather than implemented such basic charge reduction strategies as combined development and parts sharing relating to the company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced being a water-cooled boxer with front wheel drive, but plagued with problems such as water leakage and gearbox secrets. 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 creditors. Carl Borgward died inside July 1963, still insisting the company were being technically solvent. This proved to be true within the sense that after the particular creditors were paid completely, there was still four. 5 million Marks remaining from the business.
Stories of difficulties at Borgward surfaced in an article that appeared in Germany's leading news newspaper, “Der Spiegel” on 14 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted by means of a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly critical of Carl Borgward's enterprise approach, and included many of the arguments later advanced to go into detail or justify the firm's demise. The widest range regarding cars from any company in Germany, produced by three until eventually recently operationally autonomous corporations (Borgward, Goliath and Lloyd) has been supporting a turnover connected with only 650 million Grades, placing the overall sales value on the combined Borgward auto businesses only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation associated with new and modified products featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") afforded rise to components which excessively did not work, broke down or dropped apart, resulting in massive expenses for pre-delivery remediation and/or publish delivery warranty work that found their made use of to the company.The December 1960 Spiegel article hasn't been the only serious general public criticism targeting Borgward currently: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild classifieds and in television reviews. Critical media commentaries furthermore appeared concerning large loans to the Borgward Group provided with the local Landesbank.It is apparent that this business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses like auto manufacturing use their own expensive machines and tools most efficiently if they use them constantly with full capacity, but the car market in Europe inside the 1950s/60s was more seasons than today, with sales diminishing within Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was above usual, reflecting ambitious growth ideas, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered from the North American dealers within 1960 (and on the 12, 000 delivered to these) 6, 000 might have to be taken back following a slump in American demand. (Borgward was not the only real European auto maker hit by way of North American slump sought after for imported cars throughout 1960. In the same yr two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the lending company for a further 1 million Marks of credit ratings, 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 the senators withdrew their promise. They now required Carl Borgward to pledge the business itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported in a still hostile media, Borgward agreed to this senate’s terms on 5 February 1961, thereby averting the bankruptcy in the business.The Bremen Senate in addition insisted on appointing a nominee as chairman of the company’s supervisory board. The man they decided to go with was Johannes Semler who reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice on the breadth of Semler’s occupation. He had studied rules at university and worked initially as a lawyer. The scion of a top Hamburg political family, in 1945 he experienced himself been a founding member of the centre-right CSU get together, and was a member of the Bundestag between 1950 along with 1953. Despite his Hamburg sources, Semler was by these times based in Munich, with a network of contacts in the Bavarian establishment that likely included fellow CSU politician plus the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a very top administrative position from the Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators to be able to chair the Borgward supervisory aboard would, in retrospect, contribute to the hot debate that followed the Borgward personal bankruptcy.
On 28 July 1961 Semler, as Chairman of your supervisory board joined the directors on the three companies Borgward, Goliath and Lloyd to instigate proceedings with the establishment of a “Vergleichsverfahren”, which would have provided for just a court sanctioned scheme of arrangement enabling the business to continue to trade while while doing so protecting the interests associated 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” get suggested that Semler, for reasons of his or her own, never had any intent of allowing the Borgward auto-businesses for you to survive.
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