Borgward is surely an automobile manufacturer originally founded 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 cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has due to the fact been revived by Carl Borgward's son, Christian Borgward, together with his spouse Karlheinz L. Knöss, with assistance from China investment, and unveiled the corporation's first new car inside over 40 years, the BX7 at this 2015 International Motor Show.The origins of Bremen's most significant auto-business resume 1905 with the institution in nearby Varel of the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself of "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 crisis then confronting Germany, the business failed to prosper and from the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand your scope of his vehicle business, and he took control than it.
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The 1st "automobile" Carl Borgward created was the 1924 Blitzkarren (lightning cart), a sort of small three-wheeled van with 2 hp (1. 5 kW), which was an enormous success on the market gap it filled. Traders with a small budget bought it for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 as well as 7 hp Goliath Leading. Borgward turned his awareness of the other businesses along with led the development of the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 and in 1939 the label was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from corporations he had acquired in recent times to found three separate companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business at the same time of austerity and rationing. For many purposes the businesses would be run as being a single entity, but in a business operated by the man to whom delegation would not come naturally the spreading of legal entities on the other hand added unhelpful layers of complexity from the 1950s and encouraged a broadening with the range which in the end proved financially unsustainable using the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of many 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 for that life of the corporation. In 1960 the Borgward P100 had been introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these being a successful Formula Two power unit (that is also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such seeing that air suspension and automated transmission, the company had trouble competing out there. While larger companies such as Opel and VW took good thing about economies of scale along with kept their prices low to achieve market share, Borgward's cost structure was even beyond necessary for its measurement, as it basically managed as four tiny independent companies and do not implemented such basic cost reduction strategies as shared development and parts sharing between the company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced as a water-cooled boxer with entry wheel drive, but plagued with problems such as water leakage and gearbox mistakes. Lloyd lost money on the car just about the most was more expensive in comparison with its direct competitors.In 1961, the company was pushed into liquidation by credit card companies. Carl Borgward died throughout July 1963, still insisting the company ended up technically solvent. This proved to be true within the sense that after the actual creditors were paid entirely, there was still several. 5 million Marks left from the business.
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Reviews of difficulties at Borgward surfaced in the article that appeared within Germany's leading news mag, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s entrance cover. It was strongly vital of Carl Borgward's small business approach, and included many of the arguments later advanced to spell out or justify the firm's demise. The widest range involving cars from any maker in Germany, produced by three till recently operationally autonomous corporations (Borgward, Goliath and Lloyd) had been supporting a turnover connected with only 650 million Scars, placing the overall sales value on the combined Borgward auto organizations only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation involving new and modified products featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") offered rise to components which all too often did not work, broke down or dropped apart, resulting in massive costs for pre-delivery remediation and/or publish delivery warranty work that found their in the past to the company.The December 1960 Spiegel article has not been the only serious open criticism targeting Borgward right now: suddenly stridently negative (if more succinct) comments also resulted in in the influential mass-market Bild magazine and in television studies. Critical media commentaries also appeared concerning large loans on the Borgward Group provided by the local Landesbank.It is apparent which the business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses like auto manufacturing use their particular expensive machines and tools most efficiently when they use them constantly at full capacity, but the car market in Europe in the 1950s/60s was more in season than today, with sales diminishing in Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars by the end of 1960 was above usual, reflecting ambitious growth programs, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered by the North American dealers within 1960 (and with the 12, 000 delivered to them) 6, 000 might have to get taken back following a slump in North american demand. (Borgward was not really the only European auto maker hit by way of North American slump in demand for imported cars throughout 1960. In the same yr 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 lending company for a further one million Marks of credit history, the loan to be backed by way of a guarantee from the Bremen regional government which initially the Bremen senators decided to provide. However, following the flood of critical press comment the actual 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 in the still hostile media, Borgward agreed to this senate’s terms on several February 1961, thereby averting the bankruptcy in the business.The Bremen Senate additionally insisted on appointing a unique nominee as chairman with the company’s supervisory board. The man they decided to go with was Johannes Semler to whom reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice on the breadth of Semler’s career. He had studied regulation at university and worked initially as being a lawyer. The scion of a number one Hamburg political family, in 1945 he experienced himself been a founding person in the centre-right CSU celebration, and was a member of the Bundestag between 1950 as well as 1953. Despite his Hamburg sources, Semler was by these times based in Munich, with a network of contacts in the Bavarian establishment that possibly included fellow CSU politician plus the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position from the Bizone. The appointment of Johannes Semler because representative of the Bremen senators to help chair the Borgward supervisory mother board would, in retrospect, contribute to the debate that followed the Borgward personal bankruptcy.
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With 28 July 1961 Semler, as Chairman of the actual supervisory board joined the directors on 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 business to continue to trade while as well protecting the interests connected with creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of their own, never had any purpose of allowing the Borgward auto-businesses to be able to survive.
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