Borgward is surely an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in your 1960s. The Borgward group made four brands of automobiles: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's son, Christian Borgward, together with his spouse Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the businesses first new car throughout over 40 years, the BX7 at the 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business go back to 1905 with the place in nearby Varel in the "Hansa Automobilgesellschaft" and the walls in Bremen itself connected with "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial crisis then confronting Germany, the business failed to prosper and by the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand the scope of his auto business, and he took control from it.
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The primary "automobile" Carl Borgward designed was the 1924 Blitzkarren (lightning cart), a sort of little three-wheeled van with 3 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 some of them for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having had the oppertunity to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or perhaps 7 hp Goliath Leader. Borgward turned his focus on the other businesses in addition to led the development with the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 as well as in 1939 the brand 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 a lot of the brand names from firms he had acquired over time to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business each time of austerity and rationing. For many purposes the companies would be run to be a single entity, but in a business operated by a man to whom delegation would not come naturally the proliferation of legal entities however added unhelpful layers of complexity with the 1950s and encouraged a broadening with the range which in the end proved financially unsustainable with all the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.One of several top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's most widely used model and remained in production for that life of the organization. In 1960 the Borgward P100 had been introduced, equipped with pneumatic suspension.Borgward introduced a brand of 1500 cc sports racers in the late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (which has been also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such while air suspension and computerized transmission, the company had trouble competing in the market. While larger companies just like Opel and VW took good thing about economies of scale as well as kept their prices low to get market share, Borgward's cost structure was even beyond necessary for its dimension, as it basically controlled as four tiny independent companies and never implemented such basic price reduction strategies as articulation development and parts sharing between your company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced to be a water-cooled boxer with entry wheel drive, but plagued with problems for instance water leakage and gearbox mistakes. Lloyd lost money on the car though it was more expensive compared to its direct competitors.In 1961, the company was required into liquidation by collectors. Carl Borgward died inside July 1963, still insisting the company ended up technically solvent. This proved to be true in the sense that after your creditors were paid entirely, there was still 5. 5 million Marks left from the business.
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Reports of difficulties at Borgward surfaced in an article that appeared throughout Germany's leading news publication, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly crucial of Carl Borgward's small business approach, and included many of the arguments later advanced to spellout or justify the company's demise. The widest range regarding cars from any supplier in Germany, produced by three until finally recently operationally autonomous businesses (Borgward, Goliath and Lloyd) ended up being supporting a turnover involving only 650 million Marks, placing the overall sales value on the combined Borgward auto companies only in fifth place among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence by using an increasingly manic proliferation involving new and modified versions featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") gave rise to components which all too often did not work, broke down or fell 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 community criticism targeting Borgward at the moment: suddenly stridently negative (when more succinct) comments also turned up in the influential mass-market Bild classifieds and in television reviews. Critical media commentaries in addition appeared concerning large loans towards Borgward Group provided from the local Landesbank.It is apparent that this business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses like auto manufacturing use the expensive machines and tools most efficiently should they use them constantly from 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 greater than usual, reflecting ambitious growth plans, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered because of 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 United states demand. (Borgward was not the only European auto maker hit with a North American slump popular for imported cars throughout 1960. In the same yr two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
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At the end of December 1960 Borgward approached your banker for a further 1 million Marks of credit rating, the loan to be backed with a guarantee from the Bremen regional government which initially the Bremen senators decided provide. However, following the flood regarding critical press comment this 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 within a still hostile media, Borgward agreed to your senate’s terms on some February 1961, thereby averting the bankruptcy on the business.The Bremen Senate also insisted on appointing a unique nominee as chairman in the company’s supervisory board. The man they select was Johannes Semler who reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated directly into English, does less than full justice to the breadth of Semler’s vocation. He had studied rules at university and worked initially to be a lawyer. The scion of a top Hamburg political family, in 1945 he acquired himself been a founding person in the centre-right CSU party, and was a member of the Bundestag between 1950 and also 1953. Despite his Hamburg origins, Semler was by these times based in Munich, with a network of contacts from the Bavarian establishment that probably included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position from the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators in order to chair the Borgward supervisory mother board would, in retrospect, contribute to the dispute that followed the Borgward bankruptcy.
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With 28 July 1961 Semler, as Chairman of the supervisory board joined the directors from the three companies Borgward, Goliath and Lloyd to instigate proceedings for that establishment of a “Vergleichsverfahren”, which would have provided to get a court sanctioned scheme of arrangement enabling this company to continue to trade while at the same time protecting the interests regarding creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” get suggested that Semler, for reasons of their own, never had any intent of allowing the Borgward auto-businesses in order to survive.
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