Borgward can be an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the actual 1960s. The Borgward group developed four brands of cars and trucks: 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 Far east investment, and unveiled the businesses first new car within over 40 years, the BX7 at the actual 2015 International Motor Show.The origins of Bremen's most significant auto-business get back on 1905 with the institution in nearby Varel on the "Hansa Automobilgesellschaft" and the muse in Bremen itself associated with "Namag", maker of the Lloyd car or truck. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial status then confronting Germany, the business failed to prosper and with the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the scope of his auto business, and he took control of computer.
The very first "automobile" Carl Borgward designed was the 1924 Blitzkarren (lightning cart), a sort of teeny 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 ordered 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 & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the however three wheeler timber presented synthetic leather bodied 5 or maybe 7 hp Goliath Founder. Borgward turned his focus on the other businesses along with led the development of the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 as well as in 1939 the identify was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from organizations he had acquired in the past to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business at any given time of austerity and rationing. For many purposes the lenders would be run as a single entity, but in a business operated by the man to whom delegation did not come naturally the spreading of legal entities on the other hand added unhelpful layers of complexity through the 1950s and encouraged a broadening in the range which in the end proved financially unsustainable with all the sales volumes achievable. In 1949 company introduced the Borgward Hansa 1500.One of many top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started out in 1954. The Isabella would become Borgward's most popular model and remained in production for the life of the organization. In 1960 the Borgward P100 was introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line 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 several F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such because air suspension and automated transmission, the company had trouble competing in the market. While larger companies like Opel and VW took benefit of economies of scale in addition to kept their prices low to get market share, Borgward's cost structure was even higher than necessary for its size, as it basically controlled as four tiny independent companies rather than implemented such basic cost reduction strategies as articulation development and parts sharing involving the company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced like a water-cooled boxer with entrance wheel drive, but plagued with problems such as water leakage and gearbox errors. Lloyd lost money on the car although it was more expensive as compared to its direct competitors.In 1961, the company was forced into liquidation by collectors. Carl Borgward died inside July 1963, still insisting the company ended up technically solvent. This proved to be true within the sense that after the particular creditors were paid entirely, there was still some. 5 million Marks left over from the business.
Accounts of difficulties at Borgward surfaced within an article that appeared within Germany's leading news newspaper, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s top cover. It was strongly crucial of Carl Borgward's enterprise approach, and included many of the arguments later advanced to explain or justify the company's demise. The widest range regarding cars from any maker in Germany, produced by three until finally recently operationally autonomous firms (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 organizations only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation of new and modified models featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") provided rise to components which excessively did not work, broke down or fell into apart, resulting in massive bills for pre-delivery remediation and/or publish delivery warranty work that found their sources that are to the company.The December 1960 Spiegel article hasn't been the only serious open public criticism targeting Borgward currently: suddenly stridently negative (in the event that more succinct) comments also resulted in in the influential mass-market Bild classifieds and in television stories. Critical media commentaries furthermore appeared concerning large loans towards the Borgward Group provided through the local Landesbank.It is apparent how the business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses like auto manufacturing use the expensive machines and tools most efficiently should they use them constantly on full capacity, but the car market in Europe within the 1950s/60s was more periodic than today, with sales diminishing inside Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars by the end of 1960 was greater than usual, reflecting ambitious growth programs, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered with the North American dealers throughout 1960 (and from the 12, 000 delivered to these) 6, 000 might have for being taken back following a slump in United states 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 year two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
By the end of December 1960 Borgward approached your banker for a further 1 million Marks of credit score, the loan to be backed with a guarantee from the Bremen local government which initially the Bremen senators consented to provide. However, following the flood connected with critical press comment your senators withdrew their ensure. They now required Carl Borgward to pledge the company itself to the state in return 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 on the business.The Bremen Senate furthermore insisted on appointing a nominee as chairman on the company’s supervisory board. The man they select was Johannes Semler who reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice on the breadth of Semler’s occupation. He had studied law at university and worked initially as a lawyer. The scion of a respected Hamburg political family, in 1945 he acquired himself been a founding member of the centre-right CSU party, and was a member of the Bundestag between 1950 and 1953. Despite his Hamburg beginning, Semler was by these times based in Munich, with a network of contacts inside Bavarian establishment that 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 inside Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators in order to chair the Borgward supervisory aboard would, in retrospect, contribute to the debate that followed the Borgward personal bankruptcy.
On 28 July 1961 Semler, as Chairman of the particular supervisory board joined the directors with the three companies Borgward, Goliath and Lloyd to instigate proceedings with the establishment of a “Vergleichsverfahren”, which would have provided to get a court sanctioned scheme of arrangement enabling the organization to continue to trade while as well protecting the interests of 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” include suggested that Semler, for reasons of his very own, never had any intent of allowing the Borgward auto-businesses to be able to survive.
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