Borgward is usually 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 developed four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grandson, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Oriental investment, and unveiled the business's first new car inside over 40 years, the BX7 at this 2015 International Motor Present.The origins of Bremen's most significant auto-business get back to 1905 with the establishment in nearby Varel from the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself involving "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 economic situation then confronting Germany, the business failed to prosper and by the late 1920s faced a bankruptcy proceeding. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the particular scope of his auto business, and he took control of it.
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The first "automobile" Carl Borgward designed was the 1924 Blitzkarren (super cart), a sort of little three-wheeled van with only two hp (1. 5 kW), which was an enormous success on the market gap it filled. Traders with a small budget bought it for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the movie director 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 however three wheeler timber presented synthetic leather bodied 5 or perhaps 7 hp Goliath Leader. Borgward turned his focus on the other businesses as well as led the development with the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 as well as in 1939 the identify was shortened to Borgward 2000. The 2000 model was followed by the Borgward 2300that always been in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from organizations he had acquired in recent times 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 businesses would be run to be a single entity, but in a business operated by a man to whom delegation wouldn't come naturally the spreading of legal entities even so added unhelpful layers of complexity through the 1950s and encouraged a broadening with the range which eventually proved financially unsustainable while using sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.On the list of top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's hottest model and remained in production for your life of the business. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a brand of 1500 cc sports racers inside late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (which was also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such as air suspension and automated transmission, the company had trouble competing available on the market. While larger companies like Opel and VW took selling point of economies of scale and kept their prices low to realize market share, Borgward's cost structure was even above necessary for its measurement, as it basically controlled as four tiny independent companies and don't implemented such basic expense reduction strategies as combined development and parts sharing relating to the company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced to be a water-cooled boxer with entrance wheel drive, but plagued with problems including water leakage and gearbox mistakes. Lloyd lost money on the car just about the most was more expensive when compared with its direct competitors.In 1961, the company was compelled into liquidation by lenders. Carl Borgward died in July 1963, still insisting the company had been technically solvent. This proved to be true in the sense that after the particular creditors were paid completely, there was still four. 5 million Marks remaining from the business.
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Accounts of difficulties at Borgward surfaced within the article that appeared with Germany's leading news magazine, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted by means of 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 from the arguments later advanced to go into detail or justify the business's demise. The widest range of cars from any supplier in Germany, produced by three until recently operationally autonomous firms (Borgward, Goliath and Lloyd) has been supporting a turnover connected with only 650 million Marks, 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 when using increasingly manic proliferation involving new and modified versions featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") provided rise to components which many times did not work, broke down or fell into apart, resulting in massive bills 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 has not been the only serious public criticism targeting Borgward at the moment: suddenly stridently negative (in case more succinct) comments also turned up in the influential mass-market Bild newspapers and in television reviews. Critical media commentaries also appeared concerning large loans for the Borgward Group provided from the local Landesbank.It is apparent the business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses including auto manufacturing use their expensive machines and tools most efficiently should they use them constantly with full capacity, but the car market in Europe within the 1950s/60s was more seasonal than today, with sales diminishing with Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was greater than usual, reflecting ambitious growth options, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered from the North American dealers inside 1960 (and on the 12, 000 delivered to them) 6, 000 might have for being taken back following a slump in North american demand. (Borgward was not the only real European auto maker hit by way of North American slump sought after for imported cars in the course of 1960. In the same 12 months two ships carrying Renault Dauphines were turned last mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the lending company for a further just one million Marks of credit history, the loan to be backed by a guarantee from the Bremen local government which initially the Bremen senators consented to provide. However, following the flood regarding critical press comment your senators withdrew their assure. They now required Carl Borgward to pledge the company itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported inside a still hostile media, Borgward agreed to the senate’s terms on four February 1961, thereby averting the bankruptcy with the business.The Bremen Senate furthermore insisted on appointing its own nominee as chairman of the company’s supervisory board. The man they decided to go with was Johannes Semler whom reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated directly into English, does less than full justice for the breadth of Semler’s vocation. He had studied legislations at university and worked initially as being a lawyer. The scion of a number one Hamburg political family, in 1945 he got himself been a founding person in the centre-right CSU gathering, and was a member of the Bundestag between 1950 as well as 1953. Despite his Hamburg beginning, Semler was by this time around based in Munich, with a network of contacts in the Bavarian establishment that possibly 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 for the reason that representative of the Bremen senators to chair the Borgward supervisory table would, in retrospect, contribute to the conflict that followed the Borgward bankruptcy.
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About 28 July 1961 Semler, as Chairman of your supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings with the establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling this company to continue to trade while at the same time protecting the interests involving 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 his or her own, never had any intention of allowing the Borgward auto-businesses to survive.
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