Borgward is an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in the actual 1960s. The Borgward group created four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Oriental investment, and unveiled the corporation's first new car inside over 40 years, the BX7 at your 2015 International Motor Show.The origins of Bremen's most significant auto-business get back on 1905 with the institution in nearby Varel from the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself regarding "Namag", maker of the Lloyd vehicle. These two businesses merged in 1914 in order to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial status then confronting Germany, the business failed to prosper and by the late 1920s faced chapter 7. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the particular scope of his auto business, and he took control of it.
The very first "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo cart), a sort of small 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 home of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Corp. " 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 Founder. Borgward turned his focus on the other businesses and also led the development in the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 in addition to in 1939 the label was shortened to Borgward 2000. The 2000 model was then the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used many of the brand names from businesses he had acquired over the years to found three separate companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business at the same time of austerity and rationing. For many purposes the firms would be run as being a single entity, but in a business operated by way of man to whom delegation wouldn't come naturally the proliferation of legal entities on the other hand added unhelpful layers of complexity over the 1950s and encouraged a broadening from the range which in the long run proved financially unsustainable while using the sales volumes achievable. In 1949 company presented the Borgward Hansa 1500.Among the top engineers at Borgward through 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most in-demand model and remained in production to the life of the organization. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers inside late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (that has been also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such as air suspension and automated transmission, the company had trouble competing in the marketplace. While larger companies similar to Opel and VW took benefit from economies of scale and also kept their prices low to gain market share, Borgward's cost structure was even more than necessary for its sizing, as it basically controlled as four tiny independent companies and not implemented such basic expense reduction strategies as articulation development and parts sharing involving the company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced to be a water-cooled boxer with front wheel drive, but plagued with problems such as water leakage and gearbox errors. Lloyd lost money on the car even though it was more expensive compared to its direct competitors.In 1961, the company was required into liquidation by lenders. Carl Borgward died in July 1963, still insisting the company had been technically solvent. This proved to be true inside sense that after this creditors were paid 100 %, there was still several. 5 million Marks left from the business.
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Accounts of difficulties at Borgward surfaced within the article that appeared within Germany's leading news magazine, “Der Spiegel” on 15 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s front cover. It was strongly crucial of Carl Borgward's enterprise approach, and included many in the arguments later advanced to go into detail or justify the company's demise. The widest range associated with cars from any manufacturer in Germany, produced by three till recently operationally autonomous organizations (Borgward, Goliath and Lloyd) has been supporting a turnover associated with only 650 million Scars, placing the overall sales value from your combined Borgward auto organizations only in fifth placement among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation of new and modified types featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") gave rise to components which too much did not work, broke down or fell into apart, resulting in massive charges 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 had not been the only serious general public criticism targeting Borgward presently: suddenly stridently negative (when more succinct) comments also turned up in the influential mass-market Bild magazine and in television reviews. Critical media commentaries in addition appeared concerning large loans on the Borgward Group provided with the local Landesbank.It is apparent which the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses like auto manufacturing use their own expensive machines and tools most efficiently whenever they use them constantly from full capacity, but the car market in Europe inside 1950s/60s was more in season than today, with sales diminishing throughout Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars by the end of 1960 was beyond usual, reflecting ambitious growth ideas, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered by the North American dealers within 1960 (and in the 12, 000 delivered to these individuals) 6, 000 might have being taken back following a slump in Us demand. (Borgward was not the only real European auto maker hit by way of North American slump successful for imported cars throughout 1960. In the same calendar year two ships carrying Renault Dauphines were turned back mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
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Towards the end of December 1960 Borgward approached the lender for a further 1 million Marks of credit ratings, the loan to be backed by the guarantee from the Bremen regional 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 the organization 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 the particular senate’s terms on four February 1961, thereby averting the bankruptcy with the business.The Bremen Senate additionally insisted on appointing its very own nominee as chairman in the company’s supervisory board. The man they decided to go with was Johannes Semler which reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice to the breadth of Semler’s profession. He had studied regulation at university and worked initially like a lawyer. The scion of a top Hamburg political family, in 1945 he acquired himself been a founding person in the centre-right CSU celebration, and was a member of the Bundestag between 1950 in addition to 1953. Despite his Hamburg origins, Semler was by this time around based in Munich, with a network of contacts from the Bavarian establishment that possibly included fellow CSU politician along with the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position in the Bizone. The appointment of Johannes Semler as the representative of the Bremen senators in order to chair the Borgward supervisory board would, in retrospect, contribute to the conflict that followed the Borgward individual bankruptcy.
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About 28 July 1961 Semler, as Chairman of the supervisory board joined the directors of the three companies Borgward, Goliath and Lloyd to instigate proceedings for the establishment of a “Vergleichsverfahren”, which would have provided for just a court sanctioned scheme of arrangement enabling this company to continue to trade while simultaneously protecting the interests regarding creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November through the Lloyd business. Subsequent “conspiracy theorists” have got suggested that Semler, for reasons of his or her own, never had any objective of allowing the Borgward auto-businesses to survive.
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