Borgward is definitely an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in the particular 1960s. The Borgward group generated four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has considering that been revived by Carl Borgward's grand son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from China investment, and unveiled the company's first new car with 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 business in nearby Varel in the "Hansa Automobilgesellschaft" and the foundation in Bremen itself connected with "Namag", maker of the Lloyd vehicle. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economic situation then confronting Germany, the business failed to prosper and through the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a chance greatly to expand this 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 little three-wheeled van with 3 hp (1. 5 kW), which was an enormous success already in the market gap it filled. Traders with a small budget bought for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the nevertheless three wheeler timber framed synthetic leather bodied 5 as well as 7 hp Goliath Leader. Borgward turned his focus on the other businesses as well as led the development in the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 and in 1939 the label was shortened to Borgward 2000. The 2000 model was then 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 through the years to found three individual 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 nokia's would be run as a single entity, but in a business operated by way of man to whom delegation didn't come naturally the expansion of legal entities even so added unhelpful layers of complexity through the 1950s and encouraged a broadening with the range which in the long run proved financially unsustainable with the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.One of the top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella began in 1954. The Isabella would become Borgward's most widely used model and remained in production to the life of the organization. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers within the late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (that was also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties in the German market such since air suspension and automatic transmission, the company had trouble competing out there. While larger companies just like Opel and VW took benefit of economies of scale along with kept their prices low to achieve market share, Borgward's cost structure was even greater than necessary for its dimensions, as it basically handled as four tiny independent companies and don't implemented such basic price tag reduction strategies as joint 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 front wheel drive, but plagued with problems for instance water leakage and gearbox secrets. Lloyd lost money on the car community . was more expensive as compared to its direct competitors.In 1961, the company was forced into liquidation by collectors. Carl Borgward died in July 1963, still insisting the company have been technically solvent. This proved to be true within the sense that after this creditors were paid completely, there was still four. 5 million Marks left over from the business.
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Stories of difficulties at Borgward surfaced within an article that appeared throughout Germany's leading news mag, “Der Spiegel” on 14 December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted by means of a picture of Borgward, cigar in mouth, on the magazine’s front cover. It was strongly crucial of Carl Borgward's small business approach, and included many from the arguments later advanced to spell out or justify the business's demise. The widest range associated with cars from any supplier in Germany, produced by three right up until recently operationally autonomous businesses (Borgward, Goliath and Lloyd) had been supporting a turnover of only 650 million Represents, placing the overall sales value through the combined Borgward auto companies only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation involving new and modified designs featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") provided rise to components which all too often did not work, broke down or fell apart, resulting in massive payments for pre-delivery remediation and/or publish delivery warranty work that found their way back to the company.The December 1960 Spiegel article hasn't been the only serious general public criticism targeting Borgward at the moment: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild newspaper and in television stories. Critical media commentaries furthermore appeared concerning large loans towards Borgward Group provided by the local Landesbank.It is apparent the business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses like auto manufacturing use their particular expensive machines and tools most efficiently when they use them constantly with full capacity, but the car market in Europe from the 1950s/60s was more temporary 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 greater than usual, reflecting ambitious growth ideas, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered from the North American dealers in 1960 (and with the 12, 000 delivered to all of them) 6, 000 might have to become taken back following a slump in American demand. (Borgward was not the only real European auto maker hit by way of North American slump widely used for imported cars through 1960. In the same calendar year 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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Right at the end of December 1960 Borgward approached the lender for a further one particular million Marks of credit ratings, the loan to be backed by way of a guarantee from the Bremen local government which initially the Bremen senators decided to provide. However, following the flood connected with critical press comment your 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 5 February 1961, thereby averting the bankruptcy from the business.The Bremen Senate in addition insisted on appointing a unique nominee as chairman in the company’s supervisory board. The man they selected was Johannes Semler to whom reports generally describe to be a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice on the breadth of Semler’s vocation. He had studied regulation at university and worked initially as a lawyer. The scion of a number one Hamburg political family, in 1945 he acquired himself been a founding person in the centre-right CSU gathering, 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 inside Bavarian establishment that likely included fellow CSU politician along with the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a top administrative position from the Bizone. The appointment of Johannes Semler because representative of the Bremen senators in order to chair the Borgward supervisory mother board would, in retrospect, contribute to the debate that followed the Borgward a bankruptcy proceeding.
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On 28 July 1961 Semler, as Chairman of the actual supervisory board joined the directors with the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling the company to continue to trade while as well protecting the interests of creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November because of 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 in order to survive.
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