Borgward is definitely an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in the actual 1960s. The Borgward group generated four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grandson, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the firm's first new car with over 40 years, the BX7 at your 2015 International Motor Present.The origins of Bremen's most significant auto-business get back on 1905 with the institution in nearby Varel with the "Hansa Automobilgesellschaft" and the walls in Bremen itself associated with "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 economy then confronting Germany, the business failed to prosper and from the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand your scope of his automotive business, and he took control than it.
The very first "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo cart), a sort of very small three-wheeled van with 2 hp (1. 5 kW), which was an enormous success available in the market gap it filled. Traders with a small budget bought it for delivery. The Reichspost ordered many for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the however three wheeler timber presented synthetic leather bodied 5 or even 7 hp Goliath Pioneer. Borgward turned his focus on the other businesses and led the development from the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 as well as in 1939 the title 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 some of the brand names from firms he had acquired in the past to found three independent 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 lenders would be run as a single entity, but in a business operated with a man to whom delegation wouldn't come naturally the growth of legal entities even so added unhelpful layers of complexity through the 1950s and encouraged a broadening from the range which in the long run proved financially unsustainable with all the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.One of several top engineers at Borgward by 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started out in 1954. The Isabella would become Borgward's most popular model and remained in production to the life of the company. In 1960 the Borgward P100 was introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers from the late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (that was also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such as air suspension and intelligent transmission, the company had trouble competing out there. While larger companies just like Opel and VW took advantage of economies of scale along with kept their prices low to achieve market share, Borgward's cost structure was even higher than necessary for its measurement, as it basically run as four tiny independent companies and never implemented such basic price reduction strategies as articulation development and parts sharing relating to the company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced as a water-cooled boxer with entrance wheel drive, but plagued with problems like water leakage and gearbox snags. Lloyd lost money on the car though it was more expensive as compared to its direct competitors.In 1961, the company was forced into liquidation by lenders. Carl Borgward died inside July 1963, still insisting the company ended up technically solvent. This proved to be true within the sense that after the creditors were paid completely, there was still 4. 5 million Marks left from the business.
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Accounts of difficulties at Borgward surfaced in an article that appeared throughout Germany's leading news publication, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted with a picture of Borgward, cigar in mouth, on the magazine’s entrance cover. It was strongly critical of Carl Borgward's organization approach, and included many of the arguments later advanced to describe or justify the business's demise. The widest range associated with cars from any maker in Germany, produced by three right up until recently operationally autonomous companies (Borgward, Goliath and Lloyd) seemed to be supporting a turnover involving only 650 million Represents, placing the overall sales value on the combined Borgward auto companies only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence by using an increasingly manic proliferation of new and modified versions featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") presented rise to components which too often did not work, broke down or dropped apart, resulting in massive payments for pre-delivery remediation and/or publish delivery warranty work that found their way back to the company.The December 1960 Spiegel article has not been the only serious community criticism targeting Borgward currently: suddenly stridently negative (when more succinct) comments also turned up in the influential mass-market Bild newspaper and in television reports. Critical media commentaries furthermore appeared concerning large loans to the Borgward Group provided from the local Landesbank.It is apparent that this 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 should they use them constantly on full capacity, but the car market in Europe within the 1950s/60s was more seasonal than today, with sales diminishing within Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars by the end of 1960 was above usual, reflecting ambitious growth plans, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered from the North American dealers with 1960 (and from the 12, 000 delivered to these people) 6, 000 might have to become taken back following a slump in Us demand. (Borgward was not the only real European auto maker hit by way of a North American slump successful for imported cars in the course of 1960. In the same season two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the lending company for a further just one million Marks of credit rating, the loan to be backed by way of a guarantee from the Bremen regional government which initially the Bremen senators opted for provide. However, following the flood of critical press comment your senators withdrew their assure. 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 within a still hostile media, Borgward agreed to your senate’s terms on 5 February 1961, thereby averting the bankruptcy from the business.The Bremen Senate likewise insisted on appointing a nominee as chairman from the company’s supervisory board. The man they decided was Johannes Semler with whom reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated straight into English, does less than full justice for the breadth of Semler’s job. He had studied legislation at university and worked initially like a lawyer. The scion of a number one Hamburg political family, in 1945 he acquired himself been a founding person in the centre-right CSU party, and was a person in the Bundestag between 1950 and also 1953. Despite his Hamburg beginnings, Semler was by this time based in Munich, with a network of contacts within the Bavarian establishment that likely 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 since the representative of the Bremen senators in order to chair the Borgward supervisory aboard would, in retrospect, contribute to the debate that followed the Borgward a bankruptcy proceeding.
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Upon 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 for the establishment of a “Vergleichsverfahren”, which would have provided for the court sanctioned scheme of arrangement enabling this company to continue to trade while concurrently protecting the interests associated with creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” get suggested that Semler, for reasons of their own, never had any intent of allowing the Borgward auto-businesses for you to survive.
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