Borgward is surely an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the particular 1960s. The Borgward group developed four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's grand son, Christian Borgward, together with his lover Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the corporation's first new car inside over 40 years, the BX7 at the 2015 International Motor Present.The origins of Bremen's most significant auto-business get back on 1905 with the establishment in nearby Varel of the "Hansa Automobilgesellschaft" and the muse in Bremen itself connected with "Namag", maker of the Lloyd auto. These two businesses merged in 1914 to 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 personal bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the possibility greatly to expand the particular scope of his automobile business, and he took control of computer.
The very first "automobile" Carl Borgward intended was the 1924 Blitzkarren (super cart), a sort of little three-wheeled van with 3 hp (1. 5 kW), which was an enormous success out there 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 overseer of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Corp. " 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 Leader. Borgward turned his care about the other businesses as well as led the development with the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 along with in 1939 the brand was shortened to Borgward 2000. The 2000 model was then the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from organizations he had acquired in the past to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business each time of austerity and rationing. For many purposes the lenders would be run as a single entity, but in a business operated by a man to whom delegation wouldn't come naturally the growth of legal entities on the other hand added unhelpful layers of complexity with the 1950s and encouraged a broadening with the range which in the end proved financially unsustainable while using sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.On the list of top engineers at Borgward from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most widely used model and remained in production to the life of the corporation. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers within the late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (that has been also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties in the German market such seeing that air suspension and intelligent transmission, the company had trouble competing in the marketplace. While larger companies such as Opel and VW took selling point of economies of scale along with kept their prices low to realize market share, Borgward's cost structure was even higher than necessary for its dimension, as it basically handled as four tiny independent companies and don't implemented such basic charge reduction strategies as articulation development and parts sharing involving the company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced being a water-cooled boxer with entrance wheel drive, but plagued with problems such as water leakage and gearbox glitches. Lloyd lost money on the car just about the most was more expensive compared to its direct competitors.In 1961, the company was pressured into liquidation by lenders. Carl Borgward died throughout July 1963, still insisting the company ended up technically solvent. This proved to be true from the sense that after this 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 within an article that appeared in Germany's leading news journal, “Der Spiegel” on fourteen December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted with a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly essential of Carl Borgward's organization approach, and included many of the arguments later advanced to spellout or justify the company's demise. The widest range of cars from any producer in Germany, produced by three until finally recently operationally autonomous firms (Borgward, Goliath and Lloyd) was supporting a turnover involving only 650 million Represents, 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 designs featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") provided rise to components which excessively did not work, broke down or chop down apart, resulting in massive payments for pre-delivery remediation and/or submit delivery warranty work that found their sources that are to the company.The December 1960 Spiegel article was not the only serious open public criticism targeting Borgward right now: suddenly stridently negative (when more succinct) comments also turned up in the influential mass-market Bild magazine and in television accounts. Critical media commentaries also appeared concerning large loans to the Borgward Group provided with the local Landesbank.It is apparent that this business was confronting cash-flow difficulties by the end of 1960. Capital intensive businesses like auto manufacturing use their expensive machines and tools most efficiently whenever they use them constantly on full capacity, but the car market in Europe inside 1950s/60s was more seasonal than today, with sales diminishing within Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars at the end of 1960 was more than usual, reflecting ambitious growth plans, most obviously in respect of the us market[11] The December 1960 Spiegel article speculated that of the 15, 000 Borgward cars ordered because of the North American dealers with 1960 (and on the 12, 000 delivered to these people) 6, 000 might have to become taken back following a slump in North american demand. (Borgward was not the only real European auto maker hit by way of North American slump sought after for imported cars through 1960. In the same season 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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Right at 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 local government which initially the Bremen senators consented to provide. However, following the flood regarding critical press comment the particular senators withdrew their guarantee. They now required Carl Borgward to pledge the corporation 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 this senate’s terms on 4 February 1961, thereby averting the bankruptcy from the business.The Bremen Senate additionally insisted on appointing its very own nominee as chairman on the company’s supervisory board. The man they chose was Johannes Semler who reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated straight into English, does less than full justice on the breadth of Semler’s vocation. He had studied regulation at university and worked initially as a lawyer. The scion of a top Hamburg political family, in 1945 he acquired himself been a founding member of the centre-right CSU celebration, and was a person in the Bundestag between 1950 and 1953. Despite his Hamburg beginning, Semler was by this time based in Munich, with a network of contacts in the Bavarian establishment that likely included fellow CSU politician and the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position within the Bizone. The appointment of Johannes Semler because representative of the Bremen senators to chair the Borgward supervisory mother board would, in retrospect, contribute to the controversy that followed the Borgward chapter 7.
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Upon 28 July 1961 Semler, as Chairman of the actual supervisory board joined the directors from the three companies Borgward, Goliath and Lloyd to instigate proceedings for that establishment of a “Vergleichsverfahren”, which would have provided for the court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while simultaneously protecting the interests of creditors. [16] Two months after, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” get suggested that Semler, for reasons of her own, never had any intention of allowing the Borgward auto-businesses to survive.
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