Borgward can be an automobile manufacturer originally created by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in the actual 1960s. The Borgward group developed four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's grand son, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the business's first new car within over 40 years, the BX7 at the particular 2015 International Motor Display.The origins of Bremen's most significant auto-business return to 1905 with the place in nearby Varel in the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself associated with "Namag", maker of the Lloyd car or truck. These two businesses merged in 1914 to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial status then confronting Germany, the business failed to prosper and through the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator from the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the particular scope of his vehicle business, and he took control from it.
The first "automobile" Carl Borgward made was the 1924 Blitzkarren (turbo cart), a sort of small three-wheeled van with two hp (1. 5 kW), which was an enormous success in the market gap it filled. Traders with a small budget bought it for delivery. The Reichspost ordered many for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the however three wheeler timber presented synthetic leather bodied 5 or 7 hp Goliath Leading. Borgward turned his attention to the other businesses as well as led the development in the Hansa Konsul. In February 1937, there came the completely 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 always been in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from firms he had acquired through the years to found three different companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business each time of austerity and rationing. For many purposes the firms would be run as being a single entity, but in a business operated with a man to whom delegation didn't come naturally the expansion of legal entities on the other hand added unhelpful layers of complexity over the 1950s and encouraged a broadening with the range which in the end proved financially unsustainable while using sales volumes achievable. In 1949 company introduced the Borgward Hansa 1500.One of several top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started out in 1954. The Isabella would become Borgward's most favored model and remained in production to the life of the corporation. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers in the late 1950s, with the 16-valve engine from these being a 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 seeing that air suspension and programmed transmission, the company had trouble competing in the market. While larger companies similar to Opel and VW took advantage of economies of scale along with kept their prices low to achieve market share, Borgward's cost structure was even higher than necessary for its size, as it basically run as four tiny independent companies and do not implemented such basic cost reduction strategies as articulation development and parts sharing involving the company's makes. Borgward suffered quality problems at the same time. The Lloyd Arabella was technically advanced as being a water-cooled boxer with entrance wheel drive, but plagued with problems for instance water leakage and gearbox snags. Lloyd lost money on the car just about the most was more expensive compared to its direct competitors.In 1961, the company was pressured into liquidation by credit card companies. Carl Borgward died within July 1963, still insisting the company were being technically solvent. This proved to be true within the sense that after the actual creditors were paid entirely, there was still some. 5 million Marks left over from the business.
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Reviews of difficulties at Borgward surfaced in an article that appeared throughout Germany's leading news publication, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly vital of Carl Borgward's small business approach, and included many from the arguments later advanced to explain or justify the businesses demise. The widest range associated with cars from any maker in Germany, produced by three right up until recently operationally autonomous corporations (Borgward, Goliath and Lloyd) was supporting a turnover connected with only 650 million Represents, placing the overall sales value through the combined Borgward auto firms only in fifth position among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence by using an increasingly manic proliferation regarding new and modified designs featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") provided rise to components which too much did not work, broke down or dropped apart, resulting in massive expenses for pre-delivery remediation and/or article delivery warranty work that found their long ago to the company.The December 1960 Spiegel article had not been the only serious open criticism targeting Borgward at this time: suddenly stridently negative (if more succinct) comments also resulted in in the influential mass-market Bild magazine and in television studies. Critical media commentaries in addition appeared concerning large loans towards Borgward Group provided because of the local Landesbank.It is apparent that 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 when they use them constantly on full capacity, but the car market in Europe inside 1950s/60s was more periodic than today, with sales diminishing in Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars towards the end of 1960 was beyond usual, reflecting ambitious growth strategies, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered through the North American dealers in 1960 (and of the 12, 000 delivered to these) 6, 000 might have being taken back following a slump in United states demand. (Borgward was not really the only European auto maker hit by way of North American slump sought after for imported cars throughout 1960. In the same season two ships carrying Renault Dauphines were turned back mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
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At the conclusion of December 1960 Borgward approached the lender for a further one million Marks of credit score, the loan to be backed by a guarantee from the Bremen regional 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 corporation itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported in a still hostile media, Borgward agreed to this senate’s terms on 4 February 1961, thereby averting the bankruptcy from the business.The Bremen Senate likewise insisted on appointing its own nominee as chairman from the company’s supervisory board. The man they selected was Johannes Semler to whom reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice for the breadth of Semler’s profession. He had studied law at university and worked initially to be a lawyer. The scion of a leading Hamburg political family, in 1945 he experienced himself been a founding person in the centre-right CSU bash, and was a member of the Bundestag between 1950 in addition to 1953. Despite his Hamburg roots, Semler was by these times based in Munich, with a network of contacts from the Bavarian establishment that possibly included fellow CSU politician plus 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 because the representative of the Bremen senators for you to chair the Borgward supervisory mother board would, in retrospect, contribute to the debate that followed the Borgward a bankruptcy proceeding.
Upon 28 July 1961 Semler, as Chairman of the 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 the court sanctioned scheme of arrangement enabling the business to continue to trade while concurrently protecting the interests of creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of his or her own, never had any intent of allowing the Borgward auto-businesses to be able to survive.
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