Borgward is an automobile manufacturer originally created by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in this 1960s. The Borgward group generated four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grand son, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the business's first new car throughout over 40 years, the BX7 at your 2015 International Motor Present.The origins of Bremen's most significant auto-business go back to 1905 with the institution in nearby Varel of the "Hansa Automobilgesellschaft" and the walls in Bremen itself connected with "Namag", maker of the Lloyd vehicle. 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 because of the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the actual scope of his car business, and he took control of the usb ports.
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The primary "automobile" Carl Borgward designed was the 1924 Blitzkarren (super cart), a sort of tiny three-wheeled van with a couple of hp (1. 5 kW), which was an enormous success on the market gap it filled. Traders with a small budget ordered for delivery. The Reichspost ordered some 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 can't evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or 7 hp Goliath Pioneer. Borgward turned his care about the other businesses in addition to led the development in the Hansa Konsul. In February 1937, there came the completely new Hansa Borgward 2000 along with in 1939 the identify was shortened to Borgward 2000. The 2000 model was as well as the Borgward 2300that remained 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 different companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business at any given time of austerity and rationing. For many purposes the lenders would be run as a single entity, but in a business operated by the man to whom delegation would not come naturally the expansion of legal entities even so added unhelpful layers of complexity throughout the 1950s and encouraged a broadening from the range which in the long run proved financially unsustainable using the sales volumes achievable. In 1949 company offered 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 most in-demand model and remained in production for your life of the organization. In 1960 the Borgward P100 was introduced, equipped with pneumatic suspension.Borgward introduced a brand of 1500 cc sports racers in the late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (which has been also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such while air suspension and intelligent transmission, the company had trouble competing out there. While larger companies like Opel and VW took benefit of economies of scale along with kept their prices low to gain market share, Borgward's cost structure was even above necessary for its dimensions, as it basically run as four tiny independent companies rather than implemented such basic expense reduction strategies as combined development and parts sharing between the company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced to be a water-cooled boxer with top wheel drive, but plagued with problems including water leakage and gearbox secrets. Lloyd lost money on the car although it was more expensive in comparison with its direct competitors.In 1961, the company was pressured into liquidation by collectors. Carl Borgward died in July 1963, still insisting the company have been technically solvent. This proved to be true inside sense that after this creditors were paid fully, there was still 4. 5 million Marks left over from the business.
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Accounts of difficulties at Borgward surfaced within an article that appeared within Germany's leading news newspaper, “Der Spiegel” on 15 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 top cover. It was strongly important of Carl Borgward's small business approach, and included many from the arguments later advanced to describe or justify the firm's demise. The widest range associated with cars from any producer in Germany, produced by three until recently operationally autonomous corporations (Borgward, Goliath and Lloyd) has been supporting a turnover associated with only 650 million Signifies, placing the overall sales value on the combined Borgward auto organizations only in fifth situation among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation involving new and modified versions featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") afforded rise to components which too much did not work, broke down or chop down apart, resulting in massive charges for pre-delivery remediation and/or submit delivery warranty work that found their made use of 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 magazine and in television studies. Critical media commentaries in addition appeared concerning large loans on the Borgward Group provided from the local Landesbank.It is apparent which the business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses for example auto manufacturing use his or her expensive machines and tools most efficiently whenever they use them constantly on full capacity, but the car market in Europe inside the 1950s/60s was more in season than today, with sales diminishing within Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars right at the end of 1960 was above usual, reflecting ambitious growth options, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that from the 15, 000 Borgward cars ordered because of the North American dealers inside 1960 (and of the 12, 000 delivered to them) 6, 000 might have to become taken back following a slump in American demand. (Borgward was not the one European auto maker hit by the North American slump in demand for imported cars in the course of 1960. In the same year two ships carrying Renault Dauphines were turned back mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the financial institution for a further one particular million Marks of credit, the loan to be backed with a guarantee from the Bremen regional government which initially the Bremen senators decided provide. However, following the flood associated with critical press comment the senators withdrew their assure. They now required Carl Borgward to pledge the organization itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported inside a still hostile media, Borgward agreed to the senate’s terms on 4 February 1961, thereby averting the bankruptcy in the business.The Bremen Senate additionally insisted on appointing a nominee as chairman of the company’s supervisory board. The man they selected was Johannes Semler who reports generally describe to be 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 as a lawyer. The scion of a top Hamburg political family, in 1945 he experienced 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 sources, Semler was by now 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 within a top administrative position in the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators in order to chair the Borgward supervisory board would, in retrospect, contribute to the conflict that followed the Borgward personal bankruptcy.
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With 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 to the establishment of a “Vergleichsverfahren”, which would have provided to get a court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while while doing so protecting the interests connected with creditors. [16] Two months later on, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November by the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of her own, never had any purpose of allowing the Borgward auto-businesses for you to survive.
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