German brand Borgward back after 50 years [w/video] Autoblog

Borgward is definitely an automobile manufacturer originally created by Carl F. W. Borgward. The original company, based in Bremen inside Germany, ceased operations in the particular 1960s. The Borgward group developed four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has since 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 firm's first new car in over 40 years, the BX7 at the 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business get back to 1905 with the establishment in nearby Varel with the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself connected with "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial situation then confronting Germany, the business failed to prosper and through the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a chance greatly to expand the particular scope of his automotive business, and he took control than it.

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The first "automobile" Carl Borgward designed was the 1924 Blitzkarren (super cart), a sort of tiny three-wheeled van with only two hp (1. 5 kW), which was an enormous success 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 home of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or perhaps 7 hp Goliath Founder. Borgward turned his attention to the other businesses in addition to led the development on the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 in addition to in 1939 the name was shortened to Borgward 2000. The 2000 model was then the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from businesses he had acquired through the years to found three distinct companies: Borgward, Goliath and Lloyd. This was intended to increase the amount of steel allocated to his business each time of austerity and rationing. For many purposes the companies would be run being a single entity, but in a business operated by way of a man to whom delegation would not come naturally the expansion of legal entities however added unhelpful layers of complexity over the 1950s and encouraged a broadening on the range which in the long run proved financially unsustainable with all the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of the top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started in 1954. The Isabella would become Borgward's most widely used model and remained in production to the life of the business. In 1960 the Borgward P100 ended up being 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 learning to be a successful Formula Two power unit (that was also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such while air suspension and programmed transmission, the company had trouble competing in the marketplace. While larger companies such as Opel and VW took advantage of economies of scale and kept their prices low to realize market share, Borgward's cost structure was even higher than necessary for its size, as it basically controlled as four tiny independent companies and do not implemented such basic price tag reduction strategies as joint development and parts sharing between company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced to be a water-cooled boxer with entrance wheel drive, but plagued with problems for instance water leakage and gearbox glitches. Lloyd lost money on the car even though it was more expensive as compared to its direct competitors.In 1961, the company was required into liquidation by lenders. Carl Borgward died within July 1963, still insisting the company have been technically solvent. This proved to be true within the sense that after your creditors were paid fully, there was still some. 5 million Marks left over from the business.

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Reviews of difficulties at Borgward surfaced in a article that appeared throughout Germany's leading news publication, “Der Spiegel” on 14 December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted through a picture of Borgward, cigar in mouth, on the magazine’s front cover. It was strongly crucial of Carl Borgward's small business approach, and included many from the arguments later advanced to spell out or justify the firm's demise. The widest range connected with cars from any company in Germany, produced by three until recently operationally autonomous corporations (Borgward, Goliath and Lloyd) ended up being supporting a turnover involving only 650 million Grades, placing the overall sales value on the combined Borgward auto organizations only in fifth placement among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence by using an increasingly manic proliferation associated with new and modified models featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") afforded rise to components which too often did not work, broke down or droped apart, resulting in massive costs for pre-delivery remediation and/or article delivery warranty work that found their sources that are to the company.The December 1960 Spiegel article was not the only serious community criticism targeting Borgward at the moment: suddenly stridently negative (in case more succinct) comments also turned up in the influential mass-market Bild magazine and in television studies. Critical media commentaries additionally appeared concerning large loans towards Borgward Group provided through the local Landesbank.It is apparent the business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses including auto manufacturing use their own expensive machines and tools most efficiently when they use them constantly in full capacity, but the car market in Europe inside 1950s/60s was more seasons than today, with sales diminishing within Winter, then peaking in early summer months: Borgward’s inventory of unsold cars by the end of 1960 was greater than usual, reflecting ambitious growth ideas, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered by the North American dealers with 1960 (and from the 12, 000 delivered to these) 6, 000 might have for being taken back following a slump in United states demand. (Borgward was not the only European auto maker hit by the North American slump sought after for imported cars in the course of 1960. In the same year two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.

Borgward BX7 and BX7 TS mark return after 50year break Autoblog

At the conclusion of December 1960 Borgward approached the financial institution for a further 1 million Marks of credit ratings, the loan to be backed by the guarantee from the Bremen regional government which initially the Bremen senators decided provide. However, following the flood regarding critical press comment the senators withdrew their guarantee. They now required Carl Borgward to pledge the organization 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 actual senate’s terms on 5 February 1961, thereby averting the bankruptcy in the business.The Bremen Senate also insisted on appointing its own nominee as chairman in the company’s supervisory board. The man they decided to go with was Johannes Semler who reports generally describe to be a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice on the breadth of Semler’s occupation. He had studied regulation at university and worked initially being a lawyer. The scion of a respected Hamburg political family, in 1945 he got himself been a founding member of the centre-right CSU gathering, and was a member of the Bundestag between 1950 along with 1953. Despite his Hamburg sources, Semler was by now based in Munich, with a network of contacts inside Bavarian establishment that possibly included fellow CSU politician and the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position from the Bizone. The appointment of Johannes Semler because representative of the Bremen senators to chair the Borgward supervisory table would, in retrospect, contribute to the hot debate that followed the Borgward a bankruptcy proceeding.

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Upon 28 July 1961 Semler, as Chairman of your supervisory board joined the directors with the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided for just a court sanctioned scheme of arrangement enabling the company to continue to trade while while doing so protecting the interests connected with creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November through the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of his own, never had any goal of allowing the Borgward auto-businesses to help survive.

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