Borgward can be an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in the 1960s. The Borgward group developed four brands of automobiles: 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 corporation's first new car throughout over 40 years, the BX7 at this 2015 International Motor Display.The origins of Bremen's most significant auto-business resume 1905 with the place in nearby Varel on the "Hansa Automobilgesellschaft" and the foundation in Bremen itself connected with "Namag", maker of the Lloyd car or truck. These two businesses merged in 1914 to form the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial crisis then confronting Germany, the business failed to prosper and because of 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 a chance greatly to expand the scope of his automobile business, and he took control of computer.
The primary "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo cart), a sort of tiny three-wheeled van with only two hp (1. 5 kW), which was an enormous success already in the market gap it filled. Traders with a small budget purchased for delivery. The Reichspost ordered many for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or even 7 hp Goliath Master. Borgward turned his attention to the other businesses as well as led the development on the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 along with in 1939 the title was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that always been in production until 1942.After World War II, in 1946 Carl Borgward used some of the brand names from firms he had acquired over the years to found three different 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 businesses would be run to be a single entity, but in a business operated with a man to whom delegation didn't come naturally the expansion of legal entities on the other hand added unhelpful layers of complexity through the 1950s and encouraged a broadening in the range which eventually proved financially unsustainable while using sales volumes achievable. In 1949 company introduced 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 started in 1954. The Isabella would become Borgward's most popular model and remained in production for your life of the firm. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (which was also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such as air suspension and programmed transmission, the company had trouble competing in the marketplace. While larger companies just like Opel and VW took benefit from economies of scale and kept their prices low to find market share, Borgward's cost structure was even higher than necessary for its dimensions, as it basically controlled as four tiny independent companies and not implemented such basic cost reduction strategies as shared development and parts sharing between the company's makes. Borgward suffered quality problems at the same time. The Lloyd Arabella was technically advanced as a water-cooled boxer with the front wheel drive, but plagued with problems like water leakage and gearbox snags. Lloyd lost money on the car even though it was more expensive when compared with its direct competitors.In 1961, the company was compelled into liquidation by credit card companies. Carl Borgward died in July 1963, still insisting the company have been technically solvent. This proved to be true from the sense that after the creditors were paid in full, there was still several. 5 million Marks left from the business.
Reports of difficulties at Borgward surfaced in the article that appeared throughout Germany's leading news magazine, “Der Spiegel” on 14 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s entrance cover. It was strongly critical of Carl Borgward's business approach, and included many in the arguments later advanced to explain or justify the corporation's demise. The widest range connected with cars from any maker in Germany, produced by three until recently operationally autonomous corporations (Borgward, Goliath and Lloyd) ended up being supporting a turnover of only 650 million Signifies, placing the overall sales value on the combined Borgward auto businesses only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation regarding new and modified models featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") gave rise to components which too often did not work, broke down or fell into apart, resulting in massive expenses for pre-delivery remediation and/or submit delivery warranty work that found their sources that are to the company.The December 1960 Spiegel article was not the only serious open criticism targeting Borgward right now: suddenly stridently negative (in case more succinct) comments also turned up in the influential mass-market Bild newspapers and in television studies. Critical media commentaries in addition appeared concerning large loans towards Borgward Group provided through the local Landesbank.It is apparent that this business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses for example auto manufacturing use their expensive machines and tools most efficiently if they use them constantly in full capacity, but the car market in Europe in the 1950s/60s was more in season than today, with sales diminishing throughout Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars right at the end of 1960 was higher than usual, reflecting ambitious growth plans, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered from the North American dealers throughout 1960 (and with the 12, 000 delivered to these) 6, 000 might have to be 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 while in 1960. In the same year two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in Nyc were overcrowded with unsold Dauphines.
At the conclusion of December 1960 Borgward approached the financial institution for a further 1 million Marks of credit, the loan to be backed by the guarantee from the Bremen local government which initially the Bremen senators consented to provide. However, following the flood involving critical press comment the actual senators withdrew their promise. 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 the particular senate’s terms on 5 February 1961, thereby averting the bankruptcy of the business.The Bremen Senate in addition insisted on appointing its own nominee as chairman with the company’s supervisory board. The man they decided was Johannes Semler which reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated directly into English, does less than full justice towards the breadth of Semler’s profession. He had studied legislations at university and worked initially as a lawyer. The scion of a top Hamburg political family, in 1945 he got himself been a founding person in the centre-right CSU bash, and was a person in the Bundestag between 1950 as well as 1953. Despite his Hamburg sources, Semler was by these times based in Munich, with a network of contacts within the Bavarian establishment that almost certainly included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler inside a top administrative position in the Bizone. The appointment of Johannes Semler as the representative of the Bremen senators to chair the Borgward supervisory panel would, in retrospect, contribute to the conflict that followed the Borgward a bankruptcy proceeding.
Upon 28 July 1961 Semler, as Chairman of the particular supervisory board joined the directors from the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while as well protecting the interests connected with creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of his own, never had any purpose of allowing the Borgward auto-businesses to survive.
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