Borgward is usually an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the 1960s. The Borgward group produced four brands of automobiles: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Oriental investment, and unveiled the company's first new car inside over 40 years, the BX7 at this 2015 International Motor Display.The origins of Bremen's most significant auto-business get back on 1905 with the organization in nearby Varel of the "Hansa Automobilgesellschaft" and the muse in Bremen itself connected with "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial crisis then confronting Germany, the business failed to prosper and by the late 1920s faced bankruptcy. 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 automobile business, and he took control of computer.
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The first "automobile" Carl Borgward created was the 1924 Blitzkarren (turbo cart), a sort of small three-wheeled van with 2 hp (1. 5 kW), which was an enormous success out there gap it filled. Traders with a small budget bought it for delivery. The Reichspost ordered some of them for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the even now three wheeler timber framed synthetic leather bodied 5 or 7 hp Goliath Master. Borgward turned his care about the other businesses along with led the development on the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 in addition to in 1939 the brand was shortened to Borgward 2000. The 2000 model was then the Borgward 2300that remained in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from companies he had acquired through the years to found three different companies: Borgward, Goliath and Lloyd. This was intended to increase how much steel allocated to his business at a time of austerity and rationing. For many purposes nokia's would be run as a single entity, but in a business operated with a man to whom delegation did not come naturally the expansion of legal entities nonetheless added unhelpful layers of complexity with the 1950s and encouraged a broadening from the range which eventually proved financially unsustainable while using sales volumes achievable. In 1949 company introduced the Borgward Hansa 1500.One of many top engineers at Borgward by 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most widely used model and remained in production with the life of the corporation. In 1960 the Borgward P100 was introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (that is also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties in the German market such because air suspension and automated transmission, the company had trouble competing available. While larger companies including Opel and VW took benefit of economies of scale and kept their prices low to realize market share, Borgward's cost structure was even more than necessary for its dimension, as it basically run as four tiny independent companies and not implemented such basic price tag reduction strategies as mutual development and parts sharing between your company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced being a water-cooled boxer with top wheel drive, but plagued with problems like water leakage and gearbox secrets. Lloyd lost money on the car although it was more expensive compared to its direct competitors.In 1961, the company was required into liquidation by collectors. Carl Borgward died in July 1963, still insisting the company had been technically solvent. This proved to be true inside the sense that after your creditors were paid 100 %, there was still several. 5 million Marks left from the business.
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Studies of difficulties at Borgward surfaced in an article that appeared inside Germany's leading news magazine, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s entrance cover. It was strongly important of Carl Borgward's enterprise approach, and included many of the arguments later advanced to go into detail or justify the corporation's demise. The widest range connected with cars from any maker in Germany, produced by three right up until recently operationally autonomous companies (Borgward, Goliath and Lloyd) ended up being supporting a turnover involving only 650 million Represents, placing the overall sales value in the combined Borgward auto businesses only in fifth position among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation regarding new and modified designs featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") afforded rise to components which too often did not work, broke down or fell apart, resulting in massive payments for pre-delivery remediation and/or submit delivery warranty work that found their long ago to the company.The December 1960 Spiegel article has not been the only serious community criticism targeting Borgward right now: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild newspapers and in television studies. Critical media commentaries furthermore appeared concerning large loans for the Borgward Group provided from the local Landesbank.It is apparent how the business was confronting cash-flow difficulties by the end of 1960. Capital intensive businesses including auto manufacturing use their particular expensive machines and tools most efficiently whenever they use them constantly on full capacity, but the car market in Europe inside 1950s/60s was more seasons than today, with sales diminishing within Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars at the end of 1960 was more 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 by the North American dealers throughout 1960 (and in the 12, 000 delivered to these) 6, 000 might have being taken back following a slump in North american demand. (Borgward was not the only real European auto maker hit by a North American slump in demand for imported cars through 1960. In the same calendar year two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
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At the end of December 1960 Borgward approached your banker for a further one million Marks of credit, the loan to be backed by way of a guarantee from the Bremen local government which initially the Bremen senators consented to provide. However, following the flood involving critical press comment your senators withdrew their assurance. 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 within a still hostile media, Borgward agreed to your senate’s terms on 4 February 1961, thereby averting the bankruptcy in the business.The Bremen Senate furthermore insisted on appointing its nominee as chairman with the company’s supervisory board. The man they selected was Johannes Semler who reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice for the breadth of Semler’s vocation. He had studied law at university and worked initially to be 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 get together, and was a member of the Bundestag between 1950 and 1953. Despite his Hamburg sources, Semler was by this time based in Munich, with a network of contacts from the Bavarian establishment that likely included fellow CSU politician plus 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 aboard would, in retrospect, contribute to the controversy that followed the Borgward a bankruptcy proceeding.
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In 28 July 1961 Semler, as Chairman of the actual 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 business enterprise to continue to trade while while doing so protecting the interests regarding creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November through the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of his or her own, never had any intent of allowing the Borgward auto-businesses to survive.
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