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 made four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has considering 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 inside over 40 years, the BX7 at the 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business resume 1905 with the business in nearby Varel on the "Hansa Automobilgesellschaft" and the muse in Bremen itself regarding "Namag", maker of the Lloyd car. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economic situation then confronting Germany, the business failed to prosper and by the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand the scope of his auto business, and he took control from it.
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The initial "automobile" Carl Borgward designed was the 1924 Blitzkarren (lightning cart), a sort of small three-wheeled van with two hp (1. 5 kW), which was an enormous success already in the market gap it filled. Traders with a small budget bought for delivery. The Reichspost ordered quite a few for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having been able to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the however three wheeler timber presented synthetic leather bodied 5 or 7 hp Goliath Master. Borgward turned his focus on the other businesses in addition to led the development of the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 and also in 1939 the name was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from businesses he had acquired in the past 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 being a single entity, but in a business operated by a man to whom delegation didn't come naturally the growth of legal entities on the other hand added unhelpful layers of complexity with the 1950s and encouraged a broadening on the range which in the end proved financially unsustainable with the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.One of several top engineers at Borgward through 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella started in 1954. The Isabella would become Borgward's hottest model and remained in production for your life of the corporation. In 1960 the Borgward P100 seemed to be introduced, equipped with pneumatic suspension.Borgward introduced a line of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (that was also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such as air suspension and automatic transmission, the company had trouble competing in the marketplace. While larger companies just like Opel and VW took benefit of economies of scale and kept their prices low to gain market share, Borgward's cost structure was even above necessary for its sizing, as it basically operated as four tiny independent companies and don't implemented such basic expense reduction strategies as articulation development and parts sharing relating to the company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced being a water-cooled boxer with the front wheel drive, but plagued with problems including water leakage and gearbox snags. Lloyd lost money on the car although it was more expensive than its direct competitors.In 1961, the company was pushed into liquidation by credit card companies. Carl Borgward died with July 1963, still insisting the company was technically solvent. This proved to be true inside sense that after this creditors were paid 100 %, there was still 4. 5 million Marks left over from the business.
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Accounts of difficulties at Borgward surfaced in an article that appeared within Germany's leading news newspaper, “Der Spiegel” on age 14 December 1960”. The very long, detailed, and in places repetitive Spiegel article was highlighted by means of a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly vital of Carl Borgward's small business approach, and included many from the arguments later advanced to spell out or justify the business's demise. The widest range regarding cars from any company in Germany, produced by three until finally recently operationally autonomous corporations (Borgward, Goliath and Lloyd) has been supporting a turnover regarding only 650 million Grades, placing the overall sales value from your combined Borgward auto organizations only in fifth place among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation regarding new and modified types featuring adventurous, but under-developed technological innovations ("fast manisch[e] Konstruierwut") presented rise to components which too much did not work, broke down or dropped apart, resulting in massive bills for pre-delivery remediation and/or post delivery warranty work that found their made use of to the company.The December 1960 Spiegel article hasn't been the only serious public criticism targeting Borgward currently: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild magazine and in television reviews. Critical media commentaries also appeared concerning large loans on the Borgward Group provided by the local Landesbank.It is apparent the business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses such as 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 inside 1950s/60s was more seasons than today, with sales diminishing in Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars by the end of 1960 was greater than 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 with the North American dealers inside 1960 (and of 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 the sole European auto maker hit by a North American slump widely used for imported cars during 1960. In the same year two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in Nyc were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the lending company for a further 1 million Marks of credit score, the loan to be backed by way of guarantee from the Bremen regional government which initially the Bremen senators consented to provide. However, following the flood involving critical press comment the particular senators withdrew their assure. 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 senate’s terms on 4 February 1961, thereby averting the bankruptcy on the business.The Bremen Senate likewise insisted on appointing a unique nominee as chairman on the company’s supervisory board. The man they decided to go with was Johannes Semler with whom reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice towards the breadth of Semler’s profession. He had studied legislations at university and worked initially as a lawyer. The scion of a leading Hamburg political family, in 1945 he acquired himself been a founding member of the centre-right CSU get together, and was a member of the Bundestag between 1950 as well as 1953. Despite his Hamburg roots, Semler was by these times 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 a top administrative position within the Bizone. The appointment of Johannes Semler since the representative of the Bremen senators in order to chair the Borgward supervisory panel would, in retrospect, contribute to the debate that followed the Borgward bankruptcy.
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About 28 July 1961 Semler, as Chairman of this 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 for any court sanctioned scheme of arrangement enabling this company to continue to trade while concurrently protecting the interests associated with creditors. [16] Two months later on, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of their own, never had any intent of allowing the Borgward auto-businesses to help survive.
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