Borgward is surely an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the 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 grandson, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Oriental investment, and unveiled the company's first new car within over 40 years, the BX7 at the 2015 International Motor Indicate.The origins of Bremen's most significant auto-business resume 1905 with the place in nearby Varel on the "Hansa Automobilgesellschaft" and the building blocks in Bremen itself of "Namag", maker of the Lloyd car. These two businesses merged in 1914 to create 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 your scope of his auto business, and he took control of computer.
The 1st "automobile" Carl Borgward created was the 1924 Blitzkarren (lightning cart), a sort of tiny three-wheeled van with 2 hp (1. 5 kW), which was an enormous success on the market gap it filled. Traders with a small budget ordered for delivery. The Reichspost ordered many 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 & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had nowadays evolved into the however three wheeler timber presented synthetic leather bodied 5 or perhaps 7 hp Goliath Master. Borgward turned his care about the other businesses and led the development of the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 in addition to in 1939 the name 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 in the past to found three independent 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 companies would be run as being a single entity, but in a business operated by a man to whom delegation didn't come naturally the spreading of legal entities on the other hand added unhelpful layers of complexity over the 1950s and encouraged a broadening with the range which ultimately proved financially unsustainable with all the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.One of the top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started in 1954. The Isabella would become Borgward's most widely used model and remained in production to the life of the organization. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers inside late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (that has been also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such while air suspension and computerized transmission, the company had trouble competing out there. While larger companies such as Opel and VW took selling point of economies of scale in addition to kept their prices low to find market share, Borgward's cost structure was even higher than necessary for its measurement, as it basically managed as four tiny independent companies and never implemented such basic charge reduction strategies as mutual development and parts sharing between the company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced to be a water-cooled boxer with the front wheel drive, but plagued with problems for instance water leakage and gearbox mistakes. Lloyd lost money on the car although it was more expensive when compared with its direct competitors.In 1961, the company was forced into liquidation by loan companies. Carl Borgward died with July 1963, still insisting the company had been technically solvent. This proved to be true from the sense that after the actual creditors were paid entirely, there was still four. 5 million Marks left over from the business.
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Accounts of difficulties at Borgward surfaced in an article that appeared within Germany's leading news mag, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repetitive Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s front cover. It was strongly essential of Carl Borgward's business approach, and included many with the arguments later advanced to spellout or justify the corporation's demise. The widest range involving cars from any company in Germany, produced by three right up until recently operationally autonomous companies (Borgward, Goliath and Lloyd) had been supporting a turnover of only 650 million Grades, placing the overall sales value from your combined Borgward auto companies only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation associated with new and modified models featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") afforded rise to components which many times did not work, broke down or fell apart, resulting in massive bills for pre-delivery remediation and/or post delivery warranty work that found their sources that are to the company.The December 1960 Spiegel article was not the only serious public criticism targeting Borgward right now: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild paper and in television accounts. Critical media commentaries additionally appeared concerning large loans towards the Borgward Group provided because of the local Landesbank.It is apparent that the business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses such as auto manufacturing use their own expensive machines and tools most efficiently if 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 with Winter, then peaking in early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was higher than usual, reflecting ambitious growth options, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered by the North American dealers inside 1960 (and from the 12, 000 delivered to these) 6, 000 might have to get taken back following a slump in United states demand. (Borgward was not the one European auto maker hit with a North American slump widely used for imported cars during 1960. In the same year two ships carrying Renault Dauphines were turned back mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
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At the end of December 1960 Borgward approached the bank for a further 1 million Marks of credit ratings, the loan to be backed by a guarantee from the Bremen regional government which initially the Bremen senators decided to provide. However, following the flood regarding critical press comment the actual senators withdrew their promise. They now required Carl Borgward to pledge the organization itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported inside a still hostile media, Borgward agreed to the actual senate’s terms on four February 1961, thereby averting the bankruptcy from the business.The Bremen Senate likewise insisted on appointing its very own nominee as chairman of the company’s supervisory board. The man they chose was Johannes Semler who reports generally describe to be a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice for the breadth of Semler’s job. He had studied rules at university and worked initially like a lawyer. The scion of a top Hamburg political family, in 1945 he received himself been a founding person in the centre-right CSU celebration, and was a person in the Bundestag between 1950 along with 1953. Despite his Hamburg sources, Semler was by these times based in Munich, with a network of contacts from the Bavarian establishment that probably included fellow CSU politician and also the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position inside Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators for you to chair the Borgward supervisory mother board would, in retrospect, contribute to the conflict that followed the Borgward bankruptcy.
Upon 28 July 1961 Semler, as Chairman of your supervisory board joined the directors in 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 company to continue to trade while concurrently protecting the interests involving creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” have got suggested that Semler, for reasons of his own, never had any purpose of allowing the Borgward auto-businesses to survive.
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