Borgward is surely an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen inside Germany, ceased operations in the particular 1960s. The Borgward group generated four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's son, Christian Borgward, together with his lover Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the company's first new car in over 40 years, the BX7 at the particular 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business return to 1905 with the place in nearby Varel on the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself of "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economic situation then confronting Germany, the business failed to prosper and through the late 1920s faced a bankruptcy proceeding. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand the particular scope of his car business, and he took control of computer.
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The initial "automobile" Carl Borgward developed was the 1924 Blitzkarren (turbo cart), a sort of small three-wheeled van with only two hp (1. 5 kW), which was an enormous success on 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 movie director of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or perhaps 7 hp Goliath Master. Borgward turned his care about the other businesses and also 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 and then the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used some of the brand names from corporations he had acquired in recent times to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business at a time of austerity and rationing. For many purposes nokia's would be run to be a single entity, but in a business operated by way of a man to whom delegation would not come naturally the growth of legal entities on the other hand added unhelpful layers of complexity with the 1950s and encouraged a broadening in the range which ultimately proved financially unsustainable with the sales volumes achievable. In 1949 company offered 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 out in 1954. The Isabella would become Borgward's most in-demand model and remained in production for your life of the firm. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers from the late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (that was also used by a number of F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such since air suspension and automatic transmission, the company had trouble competing available on the market. While larger companies such as Opel and VW took benefit of economies of scale in addition to kept their prices low to find market share, Borgward's cost structure was even higher than necessary for its size, as it basically managed as four tiny independent companies and don't implemented such basic charge reduction strategies as combined development and parts sharing between your company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced as being a water-cooled boxer with front wheel drive, but plagued with problems like water leakage and gearbox errors. 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 was technically solvent. This proved to be true inside the sense that after the particular creditors were paid entirely, there was still 4. 5 million Marks left from the business.
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Stories of difficulties at Borgward surfaced in the article that appeared within Germany's leading news journal, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted through 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 on 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 eventually recently operationally autonomous corporations (Borgward, Goliath and Lloyd) ended up being supporting a turnover involving only 650 million Grades, placing the overall sales value from your combined Borgward auto businesses only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation connected with new and modified designs featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") afforded rise to components which many times 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 long ago to the company.The December 1960 Spiegel article was not the only serious open criticism targeting Borgward presently: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild classifieds and in television accounts. Critical media commentaries in addition appeared concerning large loans on the Borgward Group provided with the local Landesbank.It is apparent how the business was confronting cash-flow difficulties right at the end of 1960. Capital intensive businesses including auto manufacturing use their particular expensive machines and tools most efficiently if they use them constantly with full capacity, but the car market in Europe within the 1950s/60s was more in season than today, with sales diminishing inside Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars at the end of 1960 was higher than usual, reflecting ambitious growth programs, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered by the North American dealers with 1960 (and in the 12, 000 delivered to these) 6, 000 might have to get taken back following a slump in American demand. (Borgward was not the sole European auto maker hit by the North American slump popular for imported cars in the course of 1960. In the same 12 months two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
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Towards the end of December 1960 Borgward approached the lender for a further 1 million Marks of credit history, the loan to be backed with a guarantee from the Bremen regional government which initially the Bremen senators opted for provide. However, following the flood involving critical press comment the particular senators withdrew their assure. 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 very still hostile media, Borgward agreed to the particular senate’s terms on four February 1961, thereby averting the bankruptcy with the business.The Bremen Senate likewise insisted on appointing its very own nominee as chairman from the company’s supervisory board. The man they select 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 to the breadth of Semler’s career. He had studied regulation at university and worked initially like 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 bash, and was a member of the Bundestag between 1950 and 1953. Despite his Hamburg origins, Semler was by now based in Munich, with a network of contacts inside Bavarian establishment that probably included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler inside a top administrative position inside Bizone. The appointment of Johannes Semler for the reason that representative of the Bremen senators to chair the Borgward supervisory board 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 from the three companies Borgward, Goliath and Lloyd to instigate proceedings for your establishment of a “Vergleichsverfahren”, which would have provided for any court sanctioned scheme of arrangement enabling the business to continue to trade while at the same time 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 purpose of allowing the Borgward auto-businesses for you to survive.
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