Borgward is an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in this 1960s. The Borgward group generated four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has due to the fact been revived by Carl Borgward's grand son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from China investment, and unveiled the business's first new car within over 40 years, the BX7 at your 2015 International Motor Indicate.The origins of Bremen's most significant auto-business get back on 1905 with the organization in nearby Varel in the "Hansa Automobilgesellschaft" and the foundation in Bremen itself associated with "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 individual bankruptcy. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand your scope of his auto business, and he took control of computer.
The primary "automobile" Carl Borgward made was the 1924 Blitzkarren (super cart), a sort of small three-wheeled van with only two hp (1. 5 kW), which was an enormous success out there gap it filled. Traders with a small budget bought for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the director of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or even 7 hp Goliath Leader. Borgward turned his care about the other businesses in addition to led the development in 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 then the Borgward 2300that remained in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from businesses he had acquired through the years to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business at a time of austerity and rationing. For many purposes the lenders would be run being a single entity, but in a business operated by the man to whom delegation wouldn't come naturally the growth of legal entities on the other hand added unhelpful layers of complexity over the 1950s and encouraged a broadening with the range which in the long run proved financially unsustainable using the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.On the list of 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 in-demand model and remained in production to the life of the firm. In 1960 the Borgward P100 had been introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers in the late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (that is also used by a number of F1 privateers in 1961).Although Borgward pioneered technical novelties in the German market such seeing that air suspension and automated transmission, the company had trouble competing in the marketplace. While larger companies like Opel and VW took selling point of economies of scale and kept their prices low to get market share, Borgward's cost structure was even higher than necessary for its dimensions, as it basically controlled as four tiny independent companies and never implemented such basic price reduction strategies as articulation development and parts sharing between the company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced being a water-cooled boxer with top wheel drive, but plagued with problems for example water leakage and gearbox glitches. Lloyd lost money on the car though it was more expensive in comparison with its direct competitors.In 1961, the company was forced into liquidation by loan companies. Carl Borgward died inside July 1963, still insisting the company had been technically solvent. This proved to be true inside the sense that after your creditors were paid fully, there was still some. 5 million Marks left over from the business.
Studies of difficulties at Borgward surfaced in a article that appeared within Germany's leading news journal, “Der Spiegel” on age 14 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 entry cover. It was strongly crucial of Carl Borgward's small business approach, and included many in the arguments later advanced to explain or justify the company's demise. The widest range connected with cars from any manufacturer in Germany, produced by three until finally recently operationally autonomous organizations (Borgward, Goliath and Lloyd) ended up being supporting a turnover of only 650 million Grades, 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 involving new and modified models featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") offered rise to components which all too often did not work, broke down or droped apart, resulting in massive payments for pre-delivery remediation and/or publish delivery warranty work that found their long ago to the company.The December 1960 Spiegel article was not the only serious general public criticism targeting Borgward currently: suddenly stridently negative (in case more succinct) comments also resulted in in the influential mass-market Bild newspaper and in television reports. Critical media commentaries likewise appeared concerning large loans on the Borgward Group provided by the local Landesbank.It is apparent the business was confronting cash-flow difficulties by the end of 1960. Capital intensive businesses like auto manufacturing use their expensive machines and tools most efficiently if they use them constantly on full capacity, but the car market in Europe from the 1950s/60s was more seasonal than today, with sales diminishing throughout Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars at the end of 1960 was more than usual, reflecting ambitious growth ideas, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered by the North American dealers in 1960 (and on the 12, 000 delivered to these individuals) 6, 000 might have to be taken back following a slump in Us demand. (Borgward was not the sole European auto maker hit by way of a North American slump sought after for imported cars in the course of 1960. In the same calendar year two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
By the end of December 1960 Borgward approached the lending company for a further one particular million Marks of credit history, the loan to be backed with a guarantee from the Bremen regional government which initially the Bremen senators opted for provide. However, following the flood associated with critical press comment this senators withdrew their assurance. 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 within a still hostile media, Borgward agreed to the senate’s terms on several February 1961, thereby averting the bankruptcy in the business.The Bremen Senate additionally insisted on appointing its nominee as chairman from 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 straight into English, does less than full justice on 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 got himself been a founding person in the centre-right CSU get together, and was a member of the Bundestag between 1950 along with 1953. Despite his Hamburg roots, Semler was by this time around based in Munich, with a network of contacts inside Bavarian establishment that most likely included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a top administrative position in the Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators in order to chair the Borgward supervisory panel would, in retrospect, contribute to the dispute that followed the Borgward bankruptcy.
Upon 28 July 1961 Semler, as Chairman of this supervisory board joined the directors with 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 the business to continue to trade while at the same time protecting the interests of creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of their own, never had any goal of allowing the Borgward auto-businesses to help survive.
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