Borgward is surely an automobile manufacturer originally started by Carl F. W. Borgward. The original company, based in Bremen in Germany, ceased operations in the actual 1960s. The Borgward group created four brands of automobiles: Borgward, Hansa, Goliath and Lloyd.The marque has because been revived by Carl Borgward's son, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the businesses first new car with over 40 years, the BX7 at the 2015 International Motor Indicate.The origins of Bremen's most significant auto-business get back to 1905 with the business in nearby Varel on the "Hansa Automobilgesellschaft" and the foundation in Bremen itself regarding "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economy then confronting Germany, the business failed to prosper and from the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand your scope of his car business, and he took control of computer.
The initial "automobile" Carl Borgward intended was the 1924 Blitzkarren (turbo cart), a sort of little three-wheeled van with only two hp (1. 5 kW), which was an enormous success available in the market gap it filled. Traders with a small budget bought for delivery. The Reichspost ordered some of them for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the even now three wheeler timber framed synthetic leather bodied 5 or 7 hp Goliath Master. Borgward turned his focus on the other businesses along with led the development from the Hansa Konsul. In February 1937, there came the brand new Hansa Borgward 2000 in addition to in 1939 the title was shortened to Borgward 2000. The 2000 model was then the Borgward 2300that always been in production until 1942.After World War II, in 1946 Carl Borgward used some of the brand names from businesses he had acquired over time to found three distinct companies: Borgward, Goliath and Lloyd. This was intended to increase the amount of steel allocated to his business during a period of austerity and rationing. For many purposes the firms would be run as a single entity, but in a business operated with a man to whom delegation did not come naturally the growth of legal entities on the other hand added unhelpful layers of complexity over the 1950s and encouraged a broadening on the range which finally proved financially unsustainable while using the sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.One of many top engineers at Borgward through 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most popular model and remained in production for the life of the organization. In 1960 the Borgward P100 seemed to be 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 (that is also used by some F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such seeing that air suspension and automatic transmission, the company had trouble competing out there. While larger companies just like Opel and VW took selling point of economies of scale as well as kept their prices low to achieve market share, Borgward's cost structure was even beyond necessary for its sizing, as it basically controlled as four tiny independent companies and don't implemented such basic charge reduction strategies as articulation development and parts sharing between your company's makes. Borgward suffered quality problems at the same time. The Lloyd Arabella was technically advanced as being a water-cooled boxer with the front wheel drive, but plagued with problems for example water leakage and gearbox snags. Lloyd lost money on the car even though it was more expensive than its direct competitors.In 1961, the company was required into liquidation by loan companies. Carl Borgward died inside July 1963, still insisting the company ended up technically solvent. This proved to be true inside sense that after the actual creditors were paid completely, there was still 5. 5 million Marks remaining from the business.
Stories of difficulties at Borgward surfaced in a article that appeared throughout Germany's leading news publication, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places repeating Spiegel article was highlighted by means of a picture of Borgward, cigar in mouth, on the magazine’s the front cover. It was strongly crucial of Carl Borgward's enterprise approach, and included many on the arguments later advanced to explain or justify the company's demise. The widest range associated with cars from any producer in Germany, produced by three till recently operationally autonomous corporations (Borgward, Goliath and Lloyd) had been supporting a turnover involving only 650 million Scars, placing the overall sales value through the combined Borgward auto organizations only in fifth position among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence by using an increasingly manic proliferation involving new and modified designs featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") afforded rise to components which all too often did not work, broke down or droped apart, resulting in massive bills for pre-delivery remediation and/or post delivery warranty work that found their way back to the company.The December 1960 Spiegel article wasn't the only serious open criticism targeting Borgward at the moment: suddenly stridently negative (when more succinct) comments also turned up in the influential mass-market Bild newspaper and in television reviews. Critical media commentaries in addition appeared concerning large loans towards Borgward Group provided through the local Landesbank.It is apparent that the business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses such as auto manufacturing use his or her expensive machines and tools most efficiently should they use them constantly at full capacity, but the car market in Europe from the 1950s/60s was more in season than today, with sales diminishing in Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was more than usual, reflecting ambitious growth options, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered with the North American dealers throughout 1960 (and in the 12, 000 delivered to all of them) 6, 000 might have for being taken back following a slump in United states demand. (Borgward was not the only real European auto maker hit by a North American slump widely used for imported cars in the course of 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.
At the conclusion of December 1960 Borgward approached the bank for a further just one million Marks of credit ratings, the loan to be backed by the guarantee from the Bremen local government which initially the Bremen senators opted for provide. However, following the flood involving critical press comment this 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 your senate’s terms on some February 1961, thereby averting the bankruptcy from the business.The Bremen Senate also insisted on appointing its nominee as chairman of the company’s supervisory board. The man they selected was Johannes Semler with whom reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice towards breadth of Semler’s occupation. He had studied legislation at university and worked initially like a lawyer. The scion of a number one Hamburg political family, in 1945 he had himself been a founding person in the centre-right CSU get together, and was a member of the Bundestag between 1950 and 1953. Despite his Hamburg roots, Semler was by now based in Munich, with a network of contacts from the 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 a very top administrative position inside Bizone. The appointment of Johannes Semler since the representative of the Bremen senators to chair the Borgward supervisory aboard would, in retrospect, contribute to the controversy that followed the Borgward bankruptcy.
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On 28 July 1961 Semler, as Chairman of your supervisory board joined the directors from the three companies Borgward, Goliath and Lloyd to instigate proceedings for the establishment of a “Vergleichsverfahren”, which would have provided for just 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 afterwards, however, in September 1961, the Borgward and Goliath organizations were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” have got suggested that Semler, for reasons of their own, never had any intention of allowing the Borgward auto-businesses in order to survive.
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