Borgward is an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in the particular 1960s. The Borgward group made four brands of cars: 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 China investment, and unveiled the company's first new car in over 40 years, the BX7 at this 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business get back to 1905 with the organization in nearby Varel with the "Hansa Automobilgesellschaft" and the foundation in Bremen itself regarding "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial crisis then confronting Germany, the business failed to prosper and because of the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator from the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand this scope of his vehicle business, and he took control of the usb ports.
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The 1st "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo cart), a sort of small three-wheeled van with 2 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 many of them for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the still three wheeler timber presented synthetic leather bodied 5 or maybe 7 hp Goliath Leading. Borgward turned his care about the other businesses and led the development on the Hansa Konsul. In February 1937, there came the new Hansa Borgward 2000 and also in 1939 the identify 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 many of the brand names from organizations he had acquired over time to found three different companies: Borgward, Goliath and Lloyd. This was intended to increase the amount 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 way of a man to whom delegation would not come naturally the proliferation of legal entities nonetheless added unhelpful layers of complexity throughout the 1950s and encouraged a broadening of the range which finally proved financially unsustainable while using sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.Among the top engineers at Borgward coming from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started out in 1954. The Isabella would become Borgward's hottest model and remained in production with the life of the business. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a distinct 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (that was also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties within the German market such while air suspension and computerized transmission, the company had trouble competing out there. While larger companies like Opel and VW took benefit from economies of scale and kept their prices low to realize market share, Borgward's cost structure was even more than necessary for its measurement, as it basically operated as four tiny independent companies and not implemented such basic cost reduction strategies as mutual development and parts sharing between your company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced like a water-cooled boxer with entrance wheel drive, but plagued with problems such as water leakage and gearbox mistakes. Lloyd lost money on the car community . was more expensive in comparison with its direct competitors.In 1961, the company was compelled into liquidation by creditors. Carl Borgward died in July 1963, still insisting the company have been technically solvent. This proved to be true inside the sense that after your creditors were paid entirely, there was still 4. 5 million Marks left over from the business.
Reviews of difficulties at Borgward surfaced in an article that appeared throughout Germany's leading news mag, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly critical of Carl Borgward's business approach, and included many on the arguments later advanced to describe or justify the corporation's demise. The widest range associated with cars from any supplier in Germany, produced by three right up until recently operationally autonomous companies (Borgward, Goliath and Lloyd) had been supporting a turnover regarding only 650 million Scars, placing the overall sales value on the combined Borgward auto firms only in fifth placement among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation associated with new and modified products featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") provided rise to components which all too often did not work, broke down or droped apart, resulting in massive expenses for pre-delivery remediation and/or post delivery warranty work that found their long ago to the company.The December 1960 Spiegel article has not been the only serious open criticism targeting Borgward currently: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild classifieds and in television reviews. Critical media commentaries in addition appeared concerning large loans for the Borgward Group provided from the local Landesbank.It is apparent how the business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses like 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 the 1950s/60s was more temporary than today, with sales diminishing with Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars by the end of 1960 was above usual, reflecting ambitious growth options, most obviously in respect of america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered with the North American dealers inside 1960 (and with the 12, 000 delivered to these individuals) 6, 000 might have to become 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 successful for imported cars during 1960. In the same year two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
Right at the end of December 1960 Borgward approached your banker for a further one particular million Marks of credit history, the loan to be backed with a guarantee from the Bremen local government which initially the Bremen senators opted for provide. However, following the flood regarding critical press comment the senators withdrew their guarantee. They now required Carl Borgward to pledge the company itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported in the still hostile media, Borgward agreed to the actual senate’s terms on several February 1961, thereby averting the bankruptcy with the business.The Bremen Senate likewise insisted on appointing its nominee as chairman with the company’s supervisory board. The man they decided to go with was Johannes Semler which reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice on the breadth of Semler’s career. He had studied legislations at university and worked initially to be a lawyer. The scion of a leading Hamburg political family, in 1945 he acquired himself been a founding person in the centre-right CSU bash, and was a member of the Bundestag between 1950 as well as 1953. Despite his Hamburg roots, Semler was by this time based in Munich, with a network of contacts inside the Bavarian establishment that most likely included fellow CSU politician along with the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position within the Bizone. The appointment of Johannes Semler as the representative of the Bremen senators to be able to chair the Borgward supervisory table would, in retrospect, contribute to the controversy that followed the Borgward a bankruptcy proceeding.
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About 28 July 1961 Semler, as Chairman of the supervisory board joined the directors of the three companies Borgward, Goliath and Lloyd to instigate proceedings for that establishment of a “Vergleichsverfahren”, which would have provided for just a court sanctioned scheme of arrangement enabling the organization to continue to trade while simultaneously protecting the interests regarding creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” have 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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