Borgward is usually an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen inside Germany, ceased operations in the 1960s. The Borgward group produced four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grandson, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the business's first new car with over 40 years, the BX7 at the 2015 International Motor Present.The origins of Bremen's most significant auto-business return to 1905 with the establishment in nearby Varel in the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself involving "Namag", maker of the Lloyd car. These two businesses merged in 1914 to the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economic situation 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 the particular scope of his vehicle business, and he took control of it.
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The initial "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo 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 many for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the still three wheeler timber presented synthetic leather bodied 5 or perhaps 7 hp Goliath Pioneer. Borgward turned his awareness of the other businesses in addition to led the development on the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 along with in 1939 the brand was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from firms he had acquired over the years to found three separate companies: Borgward, Goliath and Lloyd. This was intended to increase the number of 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 with a man to whom delegation wouldn't come naturally the growth of legal entities even so added unhelpful layers of complexity over 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 many top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella began in 1954. The Isabella would become Borgward's most favored model and remained in production for the life of the business. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers from the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (that has been also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such as air suspension and programmed transmission, the company had trouble competing out there. While larger companies like Opel and VW took good thing about economies of scale along with kept their prices low to realize market share, Borgward's cost structure was even above necessary for its dimensions, as it basically operated as four tiny independent companies and not implemented such basic charge reduction strategies as combined development and parts sharing between company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced being a water-cooled boxer with entry wheel drive, but plagued with problems for instance water leakage and gearbox errors. Lloyd lost money on the car though it was more expensive compared to its direct competitors.In 1961, the company was pressured into liquidation by lenders. Carl Borgward died within July 1963, still insisting the company have been technically solvent. This proved to be true within the sense that after the creditors were paid 100 %, there was still 5. 5 million Marks left from the business.
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Accounts of difficulties at Borgward surfaced in an article that appeared within Germany's leading news journal, “Der Spiegel” on fourteen 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 top cover. It was strongly critical of Carl Borgward's small business approach, and included many from the arguments later advanced to explain or justify the firm's demise. The widest range regarding cars from any manufacturer in Germany, produced by three right up until recently operationally autonomous corporations (Borgward, Goliath and Lloyd) has been supporting a turnover connected with only 650 million Grades, 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 associated with new and modified models featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") presented rise to components which all too often did not work, broke down or droped apart, resulting in massive charges for pre-delivery remediation and/or write-up delivery warranty work that found their in the past to the company.The December 1960 Spiegel article was not the only serious community criticism targeting Borgward at this time: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild magazine and in television studies. Critical media commentaries in addition appeared concerning large loans towards the Borgward Group provided through the local Landesbank.It is apparent which the business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses like auto manufacturing use their own expensive machines and tools most efficiently should they use them constantly from full capacity, but the car market in Europe in the 1950s/60s was more in season than today, with sales diminishing inside Winter, then peaking in early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was more than usual, reflecting ambitious growth strategies, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered because of the North American dealers with 1960 (and of the 12, 000 delivered to all of them) 6, 000 might have being taken back following a slump in United states demand. (Borgward was not the one European auto maker hit with a North American slump popular for imported cars during 1960. In the same year two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
Towards 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 way of a guarantee from the Bremen local government which initially the Bremen senators agreed to provide. However, following the flood involving critical press comment this senators withdrew their ensure. 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 inside a still hostile media, Borgward agreed to the senate’s terms on 4 February 1961, thereby averting the bankruptcy of the business.The Bremen Senate also insisted on appointing its nominee as chairman from 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 straight into English, does less than full justice towards the breadth of Semler’s profession. He had studied regulation at university and worked initially as a lawyer. The scion of a number one Hamburg political family, in 1945 he had himself been a founding person in the centre-right CSU bash, and was a member of the Bundestag between 1950 along with 1953. Despite his Hamburg origins, Semler was by this time around based in Munich, with a network of contacts inside the Bavarian establishment that likely included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position within the Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators for you to chair the Borgward supervisory panel would, in retrospect, contribute to the dispute that followed the Borgward bankruptcy.
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About 28 July 1961 Semler, as Chairman of the supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings with the establishment of a “Vergleichsverfahren”, which would have provided for the court sanctioned scheme of arrangement enabling this company to continue to trade while simultaneously protecting the interests regarding creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of his own, never had any goal of allowing the Borgward auto-businesses to be able to survive.
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