Borgward is usually an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in the 1960s. The Borgward group made four brands of vehicles: Borgward, Hansa, Goliath and Lloyd.The marque has due to the fact been revived by Carl Borgward's grandson, Christian Borgward, together with his spouse Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the company's first new car inside over 40 years, the BX7 at this 2015 International Motor Show.The origins of Bremen's most significant auto-business get back to 1905 with the organization in nearby Varel from the "Hansa Automobilgesellschaft" and the muse in Bremen itself associated with "Namag", maker of the Lloyd car or truck. 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 with the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator from the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the actual scope of his car business, and he took control than it.
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The 1st "automobile" Carl Borgward created was the 1924 Blitzkarren (super cart), a sort of little 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 ordered for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the home of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the nonetheless three wheeler timber framed synthetic leather bodied 5 as well as 7 hp Goliath Pioneer. Borgward turned his care about the other businesses in addition to led the development from the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 as well as in 1939 the label 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 lot of the brand names from firms he had acquired in recent times 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 firms would be run as a single entity, but in a business operated by way of man to whom delegation would not come naturally the growth of legal entities on the other hand added unhelpful layers of complexity over the 1950s and encouraged a broadening in the range which in the long run proved financially unsustainable with all the sales volumes achievable. In 1949 company presented the Borgward Hansa 1500.Among the top engineers at Borgward through 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella began in 1954. The Isabella would become Borgward's most in-demand model and remained in production for your life of the corporation. In 1960 the Borgward P100 had been introduced, equipped with pneumatic suspension.Borgward introduced a brand of 1500 cc sports racers inside late 1950s, with the 16-valve engine from these becoming 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 as air suspension and computerized transmission, the company had trouble competing in the market. While larger companies such as Opel and VW took benefit of economies of scale and also kept their prices low to achieve market share, Borgward's cost structure was even greater than necessary for its dimensions, as it basically run as four tiny independent companies and never implemented such basic cost reduction strategies as joint development and parts sharing between the company's makes. Borgward suffered quality problems at the same time. The Lloyd Arabella was technically advanced as a water-cooled boxer with entrance wheel drive, but plagued with problems for example water leakage and gearbox mistakes. 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 loan companies. Carl Borgward died with July 1963, still insisting the company ended up technically solvent. This proved to be true inside sense that after this 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 within an article that appeared throughout Germany's leading news magazine, “Der Spiegel” on 15 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s top cover. It was strongly essential of Carl Borgward's company approach, and included many in the arguments later advanced to describe or justify the businesses demise. The widest range involving cars from any producer in Germany, produced by three until finally recently operationally autonomous companies (Borgward, Goliath and Lloyd) has been supporting a turnover of only 650 million Signifies, placing the overall sales value in the combined Borgward auto businesses only in fifth place among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation regarding new and modified designs featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") presented rise to components which too much did not work, broke down or fell into apart, resulting in massive charges for pre-delivery remediation and/or write-up delivery warranty work that found their way back to the company.The December 1960 Spiegel article had not been the only serious public criticism targeting Borgward at this time: suddenly stridently negative (when more succinct) comments also turned up in the influential mass-market Bild newspaper and in television studies. Critical media commentaries in addition appeared concerning large loans for the Borgward Group provided by the local Landesbank.It is apparent that this business was confronting cash-flow difficulties by the end of 1960. Capital intensive businesses including auto manufacturing use their own expensive machines and tools most efficiently when they use them constantly at full capacity, but the car market in Europe in the 1950s/60s was more temporary than today, with sales diminishing in Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars by the end of 1960 was beyond usual, reflecting ambitious growth ideas, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered from the North American dealers with 1960 (and on the 12, 000 delivered to these people) 6, 000 might have to be taken back following a slump in American demand. (Borgward was not the sole European auto maker hit by way of a North American slump successful 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.
Right at the end of December 1960 Borgward approached the financial institution for a further a single million Marks of credit score, the loan to be backed by a guarantee from the Bremen regional government which initially the Bremen senators decided to provide. However, following the flood regarding critical press comment your senators withdrew their assurance. They now required Carl Borgward to pledge the organization itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported in a still hostile media, Borgward agreed to the actual senate’s terms on some February 1961, thereby averting the bankruptcy with the business.The Bremen Senate in addition insisted on appointing a nominee as chairman from the company’s supervisory board. The man they select was Johannes Semler to whom 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 occupation. He had studied law at university and worked initially as a lawyer. The scion of a leading Hamburg political family, in 1945 he received himself been a founding person in the centre-right CSU celebration, and was a person in the Bundestag between 1950 in addition to 1953. Despite his Hamburg origins, Semler was by this time around based in Munich, with a network of contacts inside Bavarian establishment that likely included fellow CSU politician and the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in a very top administrative position in the Bizone. The appointment of Johannes Semler since the representative of the Bremen senators to chair the Borgward supervisory mother board would, in retrospect, contribute to the dispute that followed the Borgward individual bankruptcy.
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With 28 July 1961 Semler, as Chairman of your supervisory board joined the directors on the three companies Borgward, Goliath and Lloyd to instigate proceedings for that establishment of a “Vergleichsverfahren”, which would have provided to get a court sanctioned scheme of arrangement enabling the organization 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 by the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of his or her own, never had any purpose of allowing the Borgward auto-businesses in order to survive.
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