Borgward can be an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in this 1960s. The Borgward group produced four brands of automobiles: Borgward, Hansa, Goliath and Lloyd.The marque has due to the fact been revived by Carl Borgward's son, Christian Borgward, together with his lover Karlheinz L. Knöss, with assistance from Oriental investment, and unveiled the businesses first new car with over 40 years, the BX7 at the 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business resume 1905 with the place in nearby Varel in 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 through the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a chance greatly to expand this scope of his vehicle business, and he took control than it.
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The initial "automobile" Carl Borgward intended was the 1924 Blitzkarren (lightning cart), a sort of very small three-wheeled van with a couple of hp (1. 5 kW), which was an enormous success available in the market gap it filled. Traders with a small budget got it for delivery. The Reichspost ordered most of them for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or maybe 7 hp Goliath Pioneer. Borgward turned his focus on the other businesses and led the development in the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 and 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 many of the brand names from firms he had acquired through the years to found three separate 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 businesses would be run being a single entity, but in a business operated by way of man to whom delegation didn't come naturally the expansion of legal entities nevertheless added unhelpful layers of complexity over the 1950s and encouraged a broadening in the range which eventually proved financially unsustainable with all the sales volumes achievable. In 1949 company presented the Borgward Hansa 1500.Among the top engineers at Borgward from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's most popular model and remained in production for your life of the corporation. In 1960 the Borgward P100 ended up being 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 learning to be a successful Formula Two power unit (which was also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties in the German market such while air suspension and intelligent transmission, the company had trouble competing available on the market. While larger companies such as Opel and VW took advantage of economies of scale as well as kept their prices low to find market share, Borgward's cost structure was even more than necessary for its dimensions, as it basically operated as four tiny independent companies and don't implemented such basic cost reduction strategies as combined development and parts sharing involving the company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced as being a water-cooled boxer with the front wheel drive, but plagued with problems like water leakage and gearbox errors. Lloyd lost money on the car just about the most was more expensive when compared with its direct competitors.In 1961, the company was pushed into liquidation by credit card companies. Carl Borgward died in July 1963, still insisting the company ended up technically solvent. This proved to be true inside sense that after the creditors were paid fully, there was still 4. 5 million Marks left from the business.
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Stories of difficulties at Borgward surfaced within the article that appeared inside Germany's leading news mag, “Der Spiegel” on 15 December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted by means of a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly important of Carl Borgward's enterprise approach, and included many on the arguments later advanced to explain or justify the firm's demise. The widest range connected with cars from any maker in Germany, produced by three until eventually recently operationally autonomous organizations (Borgward, Goliath and Lloyd) was supporting a turnover involving only 650 million Signifies, placing the overall sales value from your combined Borgward auto corporations only in fifth placement among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation involving new and modified models featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") afforded rise to components which many times did not work, broke down or dropped apart, resulting in massive bills for pre-delivery remediation and/or post delivery warranty work that found their in the past to the company.The December 1960 Spiegel article was not the only serious open criticism targeting Borgward right now: suddenly stridently negative (when more succinct) comments also resulted in in the influential mass-market Bild newspaper and in television stories. Critical media commentaries additionally appeared concerning large loans to the Borgward Group provided from the local Landesbank.It is apparent that this business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses for instance auto manufacturing use their own expensive machines and tools most efficiently when they use them constantly from full capacity, but the car market in Europe in the 1950s/60s was more seasons than today, with sales diminishing in Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was beyond usual, reflecting ambitious growth ideas, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered with the North American dealers within 1960 (and on the 12, 000 delivered to them) 6, 000 might have being taken back following a slump in United states demand. (Borgward was not the only real European auto maker hit by the North American slump popular for imported cars throughout 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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Towards the end of December 1960 Borgward approached the financial institution for a further just one million Marks of credit ratings, the loan to be backed by the guarantee from the Bremen regional government which initially the Bremen senators opted for provide. However, following the flood connected with critical press comment the particular senators withdrew their assure. They now required Carl Borgward to pledge the corporation 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 senate’s terms on 5 February 1961, thereby averting the bankruptcy on the business.The Bremen Senate likewise insisted on appointing a nominee as chairman on the company’s supervisory board. The man they decided to go with was Johannes Semler with whom reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice on the breadth of Semler’s profession. He had studied legislation at university and worked initially as being a lawyer. The scion of a top Hamburg political family, in 1945 he got himself been a founding person in the centre-right CSU get together, and was a member of the Bundestag between 1950 and 1953. Despite his Hamburg origins, Semler was by this time based in Munich, with a network of contacts inside Bavarian establishment that almost certainly included fellow CSU politician along with the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position within the Bizone. The appointment of Johannes Semler as the representative of the Bremen senators to chair the Borgward supervisory board would, in retrospect, contribute to the controversy that followed the Borgward 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 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 as well protecting the interests regarding creditors. [16] Two months later on, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of her own, never had any purpose of allowing the Borgward auto-businesses to help survive.
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