Borgward is surely an automobile manufacturer originally created by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in the particular 1960s. The Borgward group developed four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's son, Christian Borgward, together with his spouse Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the company's first new car with over 40 years, the BX7 at the actual 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business go back to 1905 with the institution in nearby Varel from the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself connected with "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to form the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial situation then confronting Germany, the business failed to prosper and with the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the actual scope of his car business, and he took control than it.
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The very first "automobile" Carl Borgward developed was the 1924 Blitzkarren (lightning cart), a sort of little three-wheeled van with only two hp (1. 5 kW), which was an enormous success in the market gap it filled. Traders with a small budget purchased for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the home of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the however three wheeler timber framed synthetic leather bodied 5 or 7 hp Goliath Pioneer. Borgward turned his attention to the other businesses and led the development of the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 and in 1939 the brand 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 few of the brand names from organizations he had acquired in recent times to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase the number of steel allocated to his business at a time of austerity and rationing. For many purposes the lenders would be run as a single entity, but in a business operated by a man to whom delegation didn't come naturally the expansion of legal entities even so added unhelpful layers of complexity from the 1950s and encouraged a broadening with the range which eventually proved financially unsustainable with the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of many top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started out in 1954. The Isabella would become Borgward's most popular model and remained in production for your life of the business. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (that was also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such seeing that air suspension and automatic transmission, the company had trouble competing available. While larger companies including Opel and VW took benefit of economies of scale along with kept their prices low to realize market share, Borgward's cost structure was even more than necessary for its size, as it basically managed as four tiny independent companies and not implemented such basic charge reduction strategies as articulation development and parts sharing between the company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced being a water-cooled boxer with front wheel drive, but plagued with problems for instance water leakage and gearbox glitches. Lloyd lost money on the car just about the most was more expensive as compared to its direct competitors.In 1961, the company was pressured into liquidation by collectors. Carl Borgward died in July 1963, still insisting the company ended up technically solvent. This proved to be true within the sense that after this creditors were paid entirely, there was still four. 5 million Marks left over from the business.
Accounts of difficulties at Borgward surfaced in an article that appeared inside Germany's leading news magazine, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted through a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly essential of Carl Borgward's organization approach, and included many of the arguments later advanced to describe or justify the corporation's demise. The widest range regarding cars from any company in Germany, produced by three till recently operationally autonomous corporations (Borgward, Goliath and Lloyd) had been supporting a turnover of only 650 million Scars, placing the overall sales value through the combined Borgward auto companies 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 regarding new and modified designs featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") offered rise to components which many times did not work, broke down or chop down apart, resulting in massive bills for pre-delivery remediation and/or write-up delivery warranty work that found their long ago to the company.The December 1960 Spiegel article wasn't the only serious open public criticism targeting Borgward presently: suddenly stridently negative (in the event that more succinct) comments also resulted in in the influential mass-market Bild paper and in television studies. Critical media commentaries furthermore appeared concerning large loans towards the Borgward Group provided by the local Landesbank.It is apparent how the business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses for example auto manufacturing use the expensive machines and tools most efficiently when they use them constantly in 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 early summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was higher than usual, reflecting ambitious growth strategies, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered because of the North American dealers inside 1960 (and from the 12, 000 delivered to these individuals) 6, 000 might have for being taken back following a slump in American demand. (Borgward was not the only European auto maker hit by way of North American slump successful for imported cars during 1960. In the same yr two ships carrying Renault Dauphines were turned back mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
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Towards the end of December 1960 Borgward approached the financial institution for a further just one million Marks of credit, the loan to be backed with a guarantee from the Bremen local government which initially the Bremen senators decided provide. However, following the flood involving critical press comment your senators withdrew their assure. They now required Carl Borgward to pledge this company 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 5 February 1961, thereby averting the bankruptcy from the business.The Bremen Senate likewise insisted on appointing its nominee as chairman of the company’s supervisory board. The man they decided was Johannes Semler to whom reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice on the breadth of Semler’s profession. He had studied legislation at university and worked initially to be a lawyer. The scion of a top Hamburg political family, in 1945 he had 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 origins, Semler was by these times based in Munich, with a network of contacts from the Bavarian establishment that possibly included fellow CSU politician and also the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a top administrative position inside the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators to be able to chair the Borgward supervisory mother board would, in retrospect, contribute to the hot debate that followed the Borgward individual bankruptcy.
About 28 July 1961 Semler, as Chairman of this supervisory board joined the directors on the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling the business to continue to trade while at the same time protecting the interests connected with creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath companies were declared bankrupt, followed in November with 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 to survive.
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