Borgward is an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen inside Germany, ceased operations in the actual 1960s. The Borgward group generated four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has considering that been revived by Carl Borgward's son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the business's first new car with over 40 years, the BX7 at your 2015 International Motor Present.The origins of Bremen's most significant auto-business get back to 1905 with the establishment in nearby Varel of 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 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 a bankruptcy proceeding. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand the scope of his vehicle business, and he took control from it.
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The 1st "automobile" Carl Borgward intended was the 1924 Blitzkarren (super cart), a sort of very small three-wheeled van with 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 many for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having had the oppertunity to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the still three wheeler timber framed synthetic leather bodied 5 or even 7 hp Goliath Pioneer. 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 in addition to in 1939 the name was shortened to Borgward 2000. The 2000 model was followed by the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from businesses he had acquired over the years to found three individual 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 like a single entity, but in a business operated by the man to whom delegation wouldn't come naturally the spreading of legal entities on the other hand added unhelpful layers of complexity throughout the 1950s and encouraged a broadening from the range which finally proved financially unsustainable while using sales volumes achievable. In 1949 company introduced the Borgward Hansa 1500.One of the top engineers at Borgward from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella began in 1954. The Isabella would become Borgward's most favored model and remained in production for that life of the company. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a distinct 1500 cc sports racers in the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (which has been also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such while air suspension and computerized transmission, the company had trouble competing in the marketplace. While larger companies including Opel and VW took selling point of economies of scale as well as kept their prices low to get market share, Borgward's cost structure was even more than necessary for its dimensions, as it basically controlled as four tiny independent companies and never implemented such basic cost reduction strategies as shared development and parts sharing between your company's makes. Borgward suffered quality problems at the same time. The Lloyd Arabella was technically advanced to be a water-cooled boxer with the front wheel drive, but plagued with problems for example water leakage and gearbox errors. Lloyd lost money on the car although it was more expensive compared to its direct competitors.In 1961, the company was compelled into liquidation by credit card companies. Carl Borgward died within July 1963, still insisting the company ended up technically solvent. This proved to be true in the sense that after the actual creditors were paid 100 %, there was still 4. 5 million Marks left from the business.
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Reviews of difficulties at Borgward surfaced within an article that appeared with Germany's leading news journal, “Der Spiegel” on 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 front cover. It was strongly essential of Carl Borgward's business approach, and included many with the arguments later advanced to describe or justify the business's demise. The widest range regarding cars from any manufacturer in Germany, produced by three until eventually recently operationally autonomous companies (Borgward, Goliath and Lloyd) has been supporting a turnover connected with only 650 million Marks, placing the overall sales value in the combined Borgward auto firms only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation involving new and modified types featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") offered rise to components which many times did not work, broke down or chop down apart, resulting in massive expenses for pre-delivery remediation and/or article delivery warranty work that found their way back to the company.The December 1960 Spiegel article wasn't the only serious general public criticism targeting Borgward at this time: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild newspaper and in television reports. Critical media commentaries furthermore appeared concerning large loans for the Borgward Group provided through the local Landesbank.It is apparent the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses including auto manufacturing use their expensive machines and tools most efficiently whenever they use them constantly at full capacity, but the car market in Europe from the 1950s/60s was more seasonal than today, with sales diminishing inside Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars by the end of 1960 was higher than usual, reflecting ambitious growth plans, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered because of the North American dealers with 1960 (and with the 12, 000 delivered to them) 6, 000 might have being taken back following a slump in United states demand. (Borgward was not the sole European auto maker hit by a North American slump sought after for imported cars during 1960. In the same calendar year two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
By the end of December 1960 Borgward approached the lending company for a further 1 million Marks of credit, the loan to be backed by the guarantee from the Bremen regional government which initially the Bremen senators decided provide. However, following the flood involving critical press comment this senators withdrew their assurance. They now required Carl Borgward to pledge the corporation 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 senate’s terms on some February 1961, thereby averting the bankruptcy in the business.The Bremen Senate in addition insisted on appointing a unique nominee as chairman with the company’s supervisory board. The man they selected was Johannes Semler whom reports generally describe as 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 occupation. He had studied regulation at university and worked initially as a lawyer. The scion of a number one Hamburg political family, in 1945 he had himself been a founding person in the centre-right CSU bash, and was a member of the Bundestag between 1950 and 1953. Despite his Hamburg beginnings, Semler was by this time around based in Munich, with a network of contacts from the Bavarian establishment that likely included fellow CSU politician and also 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 as the representative of the Bremen senators in order to chair the Borgward supervisory board would, in retrospect, contribute to the debate that followed the Borgward individual bankruptcy.
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About 28 July 1961 Semler, as Chairman of the particular supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings to the establishment of a “Vergleichsverfahren”, which would have provided for just 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 firms were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” have got suggested that Semler, for reasons of her own, never had any purpose of allowing the Borgward auto-businesses in order to survive.
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