Borgward is usually an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in the particular 1960s. The Borgward group made four brands of autos: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's grand son, Christian Borgward, together with his partner Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the business's first new car within over 40 years, the BX7 at the 2015 International Motor Display.The origins of Bremen's most significant auto-business return to 1905 with the organization in nearby Varel of the "Hansa Automobilgesellschaft" and the building blocks in Bremen itself involving "Namag", maker of the Lloyd car. These two businesses merged in 1914 to create 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 chapter 7. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a chance greatly to expand the particular scope of his vehicle business, and he took control from it.
The very first "automobile" Carl Borgward intended was the 1924 Blitzkarren (lightning cart), a sort of very small three-wheeled van with only two hp (1. 5 kW), which was an enormous success on the market gap it filled. Traders with a small budget bought for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having had the oppertunity to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or maybe 7 hp Goliath Pioneer. Borgward turned his attention to the other businesses and also led the development with the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 along with in 1939 the name was shortened to Borgward 2000. The 2000 model was accompanied by 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 through the years to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the quantity of steel allocated to his business at a time of austerity and rationing. For many purposes the companies would be run to be a single entity, but in a business operated by the man to whom delegation would not come naturally the spreading of legal entities even so added unhelpful layers of complexity with the 1950s and encouraged a broadening of the range which eventually proved financially unsustainable while using the sales volumes achievable. In 1949 company offered the Borgward Hansa 1500.One of the top engineers at Borgward 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 popular model and remained in production with the 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 from the late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (that is also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside the German market such as air suspension and computerized transmission, the company had trouble competing available on the market. While larger companies similar to Opel and VW took advantage of economies of scale as well as kept their prices low to gain market share, Borgward's cost structure was even beyond necessary for its dimension, as it basically operated as four tiny independent companies and do not implemented such basic cost reduction strategies as shared development and parts sharing involving the company's makes. Borgward suffered quality problems too. The Lloyd Arabella was technically advanced as being a water-cooled boxer with entrance wheel drive, but plagued with problems such as water leakage and gearbox mistakes. Lloyd lost money on the car community . was more expensive as compared to its direct competitors.In 1961, the company was pressured into liquidation by loan companies. Carl Borgward died within July 1963, still insisting the company were being technically solvent. This proved to be true from the sense that after your creditors were paid completely, there was still several. 5 million Marks remaining from the business.
Reports of difficulties at Borgward surfaced in an article that appeared with Germany's leading news mag, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places repeated Spiegel article was highlighted with a picture of Borgward, cigar in mouth, on the magazine’s top cover. It was strongly critical of Carl Borgward's organization approach, and included many on the arguments later advanced to spell out or justify the businesses demise. The widest range associated with cars from any maker in Germany, produced by three until recently operationally autonomous firms (Borgward, Goliath and Lloyd) seemed to be supporting a turnover of only 650 million Represents, placing the overall sales value from your combined Borgward auto firms 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 models featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") offered rise to components which many times did not work, broke down or dropped apart, resulting in massive payments for pre-delivery remediation and/or submit delivery warranty work that found their in the past to the company.The December 1960 Spiegel article had not been the only serious public criticism targeting Borgward at the moment: suddenly stridently negative (if more succinct) comments also resulted in in the influential mass-market Bild classifieds and in television accounts. Critical media commentaries additionally appeared concerning large loans to the Borgward Group provided by the local Landesbank.It is apparent that this business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses like auto manufacturing use their particular expensive machines and tools most efficiently whenever they use them constantly on full capacity, but the car market in Europe in the 1950s/60s was more seasons than today, with sales diminishing in Winter, then peaking in the first summer months: Borgward’s inventory of unsold cars at the end of 1960 was above 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 from the North American dealers throughout 1960 (and of 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 European auto maker hit with a North American slump popular for imported cars throughout 1960. In the same yr two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in New york were overcrowded with unsold Dauphines.
Right at the end of December 1960 Borgward approached the bank for a further just one million Marks of credit ratings, the loan to be backed with a guarantee from the Bremen local government which initially the Bremen senators agreed to provide. However, following the flood regarding critical press comment your senators withdrew their promise. 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 the still hostile media, Borgward agreed to the senate’s terms on 4 February 1961, thereby averting the bankruptcy on the business.The Bremen Senate also insisted on appointing its very own nominee as chairman in the company’s supervisory board. The man they chose was Johannes Semler with whom reports generally describe as being 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 number one Hamburg political family, in 1945 he acquired himself been a founding member of the centre-right CSU gathering, and was a person in the Bundestag between 1950 as well as 1953. Despite his Hamburg beginning, Semler was by this time around based in Munich, with a network of contacts inside Bavarian establishment that most likely included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position within the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators in order to chair the Borgward supervisory mother board would, in retrospect, contribute to the dispute that followed the Borgward a bankruptcy proceeding.
In 28 July 1961 Semler, as Chairman of your 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 for a court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while at the same time protecting the interests connected with creditors. [16] Two months later on, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November through the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of his very own, never had any intent of allowing the Borgward auto-businesses to survive.
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