Borgward can be an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the particular 1960s. The Borgward group created four brands of autos: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's son, Christian Borgward, together with his lover Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the company's first new car throughout over 40 years, the BX7 at the actual 2015 International Motor Indicate.The origins of Bremen's most significant auto-business get back to 1905 with the business in nearby Varel with the "Hansa Automobilgesellschaft" and the muse in Bremen itself associated with "Namag", maker of the Lloyd car. These two businesses merged in 1914 to form the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial status then confronting Germany, the business failed to prosper and from the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the particular scope of his automobile business, and he took control of the usb ports.
The first "automobile" Carl Borgward developed was the 1924 Blitzkarren (lightning cart), a sort of tiny three-wheeled van with two hp (1. 5 kW), which was an enormous success already in the market gap it filled. Traders with a small budget bought for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having had the oppertunity to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the still three wheeler timber framed synthetic leather bodied 5 or even 7 hp Goliath Leading. Borgward turned his care about the other businesses as well as led the development on the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 along with in 1939 the label was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used many of the brand names from companies he had acquired over time to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the number of steel allocated to his business at a time of austerity and rationing. For many purposes the businesses would be run as a single entity, but in a business operated by way of man to whom delegation did not come naturally the expansion of legal entities nevertheless added unhelpful layers of complexity through the 1950s and encouraged a broadening on the range which in the end proved financially unsustainable with the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.Among the top engineers at Borgward through 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 for the life of the firm. In 1960 the Borgward P100 was introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers in the late 1950s, with the 16-valve engine from these being a successful Formula Two power unit (that was also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such because air suspension and intelligent transmission, the company had trouble competing available on the market. While larger companies including Opel and VW took selling point of economies of scale and kept their prices low to realize market share, Borgward's cost structure was even more than necessary for its dimensions, as it basically controlled as four tiny independent companies and don't 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 to be a water-cooled boxer with top wheel drive, but plagued with problems for example water leakage and gearbox errors. Lloyd lost money on the car though it was more expensive as compared to its direct competitors.In 1961, the company was compelled into liquidation by credit card companies. Carl Borgward died in July 1963, still insisting the company had been technically solvent. This proved to be true within the sense that after the actual creditors were paid 100 %, there was still four. 5 million Marks remaining from the business.
Accounts of difficulties at Borgward surfaced in a article that appeared in Germany's leading news mag, “Der Spiegel” on 15 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 top cover. It was strongly critical of Carl Borgward's small business approach, and included many in the arguments later advanced to go into detail or justify the company's demise. The widest range associated with cars from any company in Germany, produced by three until eventually recently operationally autonomous organizations (Borgward, Goliath and Lloyd) has been supporting a turnover regarding only 650 million Scars, placing the overall sales value in the combined Borgward auto firms 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 of new and modified types featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") afforded rise to components which all too often did not work, broke down or fell into apart, resulting in massive payments for pre-delivery remediation and/or write-up delivery warranty work that found their in the past to the company.The December 1960 Spiegel article was not the only serious public criticism targeting Borgward presently: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild newspapers and in television reviews. Critical media commentaries in addition appeared concerning large loans for 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 including auto manufacturing use his or her expensive machines and tools most efficiently as long as they use them constantly with full capacity, but the car market in Europe inside 1950s/60s was more in season than today, with sales diminishing within Winter, then peaking in early summer months: Borgward’s inventory of unsold cars at the end of 1960 was greater than usual, reflecting ambitious growth options, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered by the North American dealers inside 1960 (and with the 12, 000 delivered to these) 6, 000 might have to get taken back following a slump in United states demand. (Borgward was not the only real European auto maker hit by way of a North American slump successful for imported cars through 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.
Towards the end of December 1960 Borgward approached your banker for a further 1 million Marks of credit ratings, the loan to be backed with a guarantee from the Bremen regional government which initially the Bremen senators agreed 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 particular senate’s terms on four February 1961, thereby averting the bankruptcy of the business.The Bremen Senate likewise insisted on appointing its nominee as chairman with the company’s supervisory board. The man they selected was Johannes Semler with whom reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice towards the breadth of Semler’s occupation. He had studied law at university and worked initially like a lawyer. The scion of a leading Hamburg political family, in 1945 he had himself been a founding member of the centre-right CSU get together, and was a person in the Bundestag between 1950 along with 1953. Despite his Hamburg origins, Semler was by this time based in Munich, with a network of contacts from the Bavarian establishment that probably included fellow CSU politician along with the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position inside Bizone. The appointment of Johannes Semler because representative of the Bremen senators to help chair the Borgward supervisory table would, in retrospect, contribute to the conflict that followed the Borgward personal bankruptcy.
In 28 July 1961 Semler, as Chairman of the supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings for the establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling this company to continue to trade while as well protecting the interests involving creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November from 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 help survive.
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