Borgward is an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in the 1960s. The Borgward group produced four brands of autos: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's grandson, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the company's first new car in over 40 years, the BX7 at the particular 2015 International Motor Demonstrate.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 building blocks in Bremen itself regarding "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial situation then confronting Germany, the business failed to prosper and because of the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand your scope of his car business, and he took control from it.
The primary "automobile" Carl Borgward developed was the 1924 Blitzkarren (turbo cart), a sort of little three-wheeled van with a couple of hp (1. 5 kW), which was an enormous success available in the market gap it filled. Traders with a small budget got it for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the however three wheeler timber framed synthetic leather bodied 5 or even 7 hp Goliath Master. Borgward turned his attention to the other businesses and led the development on the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 as well as in 1939 the name was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from businesses 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 during a period of austerity and rationing. For many purposes the companies would be run being a single entity, but in a business operated by way of a man to whom delegation did not come naturally the expansion of legal entities however added unhelpful layers of complexity throughout the 1950s and encouraged a broadening from the range which in the end proved financially unsustainable while using the sales volumes achievable. In 1949 company presented the Borgward Hansa 1500.One of many top engineers at Borgward through 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 for your life of the company. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a distinct 1500 cc sports racers from the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (that was also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such as air suspension and computerized transmission, the company had trouble competing in the marketplace. While larger companies like Opel and VW took benefit of economies of scale along with kept their prices low to gain market share, Borgward's cost structure was even higher than necessary for its size, as it basically run as four tiny independent companies and do not implemented such basic cost reduction strategies as shared development and parts sharing between your company's makes. Borgward suffered quality problems at the same time. The Lloyd Arabella was technically advanced as being a water-cooled boxer with top wheel drive, but plagued with problems like water leakage and gearbox secrets. Lloyd lost money on the car though it was more expensive in comparison with its direct competitors.In 1961, the company was compelled into liquidation by loan companies. Carl Borgward died inside July 1963, still insisting the company was technically solvent. This proved to be true from the sense that after this creditors were paid entirely, there was still 4. 5 million Marks left from the business.
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Stories of difficulties at Borgward surfaced within the article that appeared within Germany's leading news publication, “Der Spiegel” on 15 December 1960”. The very long, detailed, and in places repetitive Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s front cover. It was strongly essential of Carl Borgward's enterprise approach, and included many from the arguments later advanced to go into detail or justify the company's demise. The widest range involving cars from any manufacturer in Germany, produced by three till recently operationally autonomous organizations (Borgward, Goliath and Lloyd) was supporting a turnover involving only 650 million Grades, placing the overall sales value from your combined Borgward auto businesses only in fifth position among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation involving new and modified designs featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") gave rise to components which excessively did not work, broke down or chop down apart, resulting in massive payments for pre-delivery remediation and/or write-up delivery warranty work that found their sources that are to the company.The December 1960 Spiegel article has not been the only serious open criticism targeting Borgward right now: suddenly stridently negative (if more succinct) comments also turned up in the influential mass-market Bild newspapers and in television studies. Critical media commentaries also appeared concerning large loans on the Borgward Group provided because of the local Landesbank.It is apparent that this business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses such as auto manufacturing use the 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 periodic than today, with sales diminishing within Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars towards the end of 1960 was beyond usual, reflecting ambitious growth strategies, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered through the North American dealers within 1960 (and from the 12, 000 delivered to these people) 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 sought after for imported cars throughout 1960. In the same calendar year two ships carrying Renault Dauphines were turned last mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
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Right at the end of December 1960 Borgward approached the bank for a further just one 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 involving critical press comment the actual senators withdrew their assurance. They now required Carl Borgward to pledge the business 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 several February 1961, thereby averting the bankruptcy in the business.The Bremen Senate likewise insisted on appointing a nominee as chairman from the company’s supervisory board. The man they decided was Johannes Semler with whom reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice on the breadth of Semler’s vocation. He had studied regulation at university and worked initially like a lawyer. The scion of a leading Hamburg political family, in 1945 he acquired himself been a founding person in the centre-right CSU gathering, and was a member of the Bundestag between 1950 as well as 1953. Despite his Hamburg origins, Semler was by this time 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 inside a top administrative position inside the Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators in order to chair the Borgward supervisory mother board would, in retrospect, contribute to the conflict that followed the Borgward personal bankruptcy.
With 28 July 1961 Semler, as Chairman of your supervisory board joined the directors with 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 simultaneously protecting the interests associated with creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of his very own, never had any intent of allowing the Borgward auto-businesses for you to survive.
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