Borgward can be an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in your 1960s. The Borgward group generated four brands of automobiles: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's grand son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the businesses first new car within over 40 years, the BX7 at this 2015 International Motor Indicate.The origins of Bremen's most significant auto-business get back to 1905 with the institution in nearby Varel from the "Hansa Automobilgesellschaft" and the muse in Bremen itself involving "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial crisis then confronting Germany, the business failed to prosper and from the late 1920s faced a bankruptcy proceeding. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the particular scope of his automotive business, and he took control of it.
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The very first "automobile" Carl Borgward created was the 1924 Blitzkarren (turbo cart), a sort of teeny three-wheeled van with two hp (1. 5 kW), which was an enormous success 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 had the oppertunity to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the nonetheless three wheeler timber framed synthetic leather bodied 5 or maybe 7 hp Goliath Master. Borgward turned his awareness of the other businesses and led the development of the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 as well as 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 firms he had acquired in recent times to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business at any given time of austerity and rationing. For many purposes nokia's would be run to be a single entity, but in a business operated with a man to whom delegation wouldn't come naturally the spreading of legal entities even so added unhelpful layers of complexity over the 1950s and encouraged a broadening of the range which eventually proved financially unsustainable using the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.On the list of top engineers at Borgward by 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most favored model and remained in production with the life of the corporation. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a brand of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (that has been also used by a number of F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such since air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies including Opel and VW took good thing about economies of scale and also kept their prices low to get market share, Borgward's cost structure was even greater than necessary for its measurement, as it basically controlled as four tiny independent companies and never implemented such basic price tag reduction strategies as mutual development and parts sharing between your company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced as a water-cooled boxer with the front wheel drive, but plagued with problems including water leakage and gearbox errors. Lloyd lost money on the car just about the most was more expensive when compared with its direct competitors.In 1961, the company was required into liquidation by credit card 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 entirely, there was still 4. 5 million Marks left from the business.
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Reports of difficulties at Borgward surfaced within the article that appeared throughout Germany's leading news magazine, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s entrance cover. It was strongly essential of Carl Borgward's business approach, and included many from the arguments later advanced to explain or justify the firm's demise. The widest range of cars from any supplier in Germany, produced by three till recently operationally autonomous corporations (Borgward, Goliath and Lloyd) has been supporting a turnover involving only 650 million Marks, placing the overall sales value from the combined Borgward auto companies only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation of new and modified versions featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") offered rise to components which too often did not work, broke down or droped apart, resulting in massive bills for pre-delivery remediation and/or post delivery warranty work that found their long ago to the company.The December 1960 Spiegel article was not the only serious open public criticism targeting Borgward at the moment: suddenly stridently negative (if more succinct) comments also turned up in the influential mass-market Bild newspaper and in television reviews. Critical media commentaries furthermore appeared concerning large loans to the Borgward Group provided from 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 his or her expensive machines and tools most efficiently as long as they use them constantly on full capacity, but the car market in Europe within the 1950s/60s was more seasonal than today, with sales diminishing in Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was higher than usual, reflecting ambitious growth options, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered from the North American dealers inside 1960 (and in the 12, 000 delivered to these people) 6, 000 might have to get taken back following a slump in American demand. (Borgward was not the one European auto maker hit by a North American slump sought after for imported cars during 1960. In the same yr two ships carrying Renault Dauphines were turned last mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
At the end of December 1960 Borgward approached the lending company for a further just one million Marks of credit, the loan to be backed by a guarantee from the Bremen regional government which initially the Bremen senators decided to provide. However, following the flood associated with critical press comment the senators withdrew their assure. 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 the still hostile media, Borgward agreed to this senate’s terms on some February 1961, thereby averting the bankruptcy from the business.The Bremen Senate additionally insisted on appointing a unique nominee as chairman with the company’s supervisory board. The man they chose was Johannes Semler with whom reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated directly into English, does less than full justice on the breadth of Semler’s vocation. He had studied legislation at university and worked initially as a lawyer. The scion of a leading Hamburg political family, in 1945 he experienced himself been a founding person in the centre-right CSU gathering, and was a member of the Bundestag between 1950 and 1953. Despite his Hamburg origins, Semler was by this time around based in Munich, with a network of contacts within the Bavarian establishment that probably included fellow CSU politician plus the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a very top administrative position within the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators to help chair the Borgward supervisory mother board would, in retrospect, contribute to the controversy that followed the Borgward personal bankruptcy.
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On 28 July 1961 Semler, as Chairman of the actual supervisory board joined the directors from 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 organization to continue to trade while simultaneously 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 because of the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of her own, never had any objective of allowing the Borgward auto-businesses to survive.
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