Borgward can be an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the 1960s. The Borgward group developed four brands of autos: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grandson, Christian Borgward, together with his companion Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the firm'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 go back to 1905 with the establishment in nearby Varel from the "Hansa Automobilgesellschaft" and the building blocks in Bremen itself involving "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 in order to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial status then confronting Germany, the business failed to prosper and through the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator with the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand the scope of his vehicle business, and he took control than it.
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The first "automobile" Carl Borgward developed was the 1924 Blitzkarren (super 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 it for delivery. The Reichspost ordered many for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having had time to merge his "Goliath-Werke Borgward & Co. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the however three wheeler timber framed synthetic leather bodied 5 or 7 hp Goliath Leading. Borgward turned his focus on the other businesses and led the development with the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 in addition to in 1939 the label was shortened to Borgward 2000. The 2000 model was and then the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used a few of the brand names from corporations 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 at any given time of austerity and rationing. For many purposes the companies would be run like a single entity, but in a business operated by a man to whom delegation would not come naturally the expansion of legal entities nevertheless added unhelpful layers of complexity throughout the 1950s and encouraged a broadening with the range which in the long run proved financially unsustainable while using sales volumes achievable. In 1949 company introduced the Borgward Hansa 1500.One of many 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 widely used model and remained in production for that life of the organization. In 1960 the Borgward P100 ended up being 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 (which has been 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 marketplace. While larger companies including Opel and VW took benefit from economies of scale and kept their prices low to achieve market share, Borgward's cost structure was even more than necessary for its dimensions, as it basically run as four tiny independent companies rather than implemented such basic cost reduction strategies as joint development and parts sharing relating to the company's makes. Borgward suffered quality problems at the same time. The Lloyd Arabella was technically advanced being a water-cooled boxer with entry wheel drive, but plagued with problems for example water leakage and gearbox snags. Lloyd lost money on the car though it was more expensive in comparison with its direct competitors.In 1961, the company was pressured into liquidation by creditors. Carl Borgward died throughout July 1963, still insisting the company had been technically solvent. This proved to be true inside the sense that after the creditors were paid entirely, there was still several. 5 million Marks left from the business.
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Studies of difficulties at Borgward surfaced in a article that appeared inside Germany's leading news mag, “Der Spiegel” on 14 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted through a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly vital of Carl Borgward's business approach, and included many from the arguments later advanced to describe or justify the business's demise. The widest range associated with cars from any maker in Germany, produced by three until eventually recently operationally autonomous businesses (Borgward, Goliath and Lloyd) was supporting a turnover involving only 650 million Grades, placing the overall sales value from your combined Borgward auto corporations only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence on an increasingly manic proliferation associated with new and modified versions featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") afforded rise to components which too much did not work, broke down or chop down apart, resulting in massive expenses for pre-delivery remediation and/or submit 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 the moment: suddenly stridently negative (when more succinct) comments also resulted in in the influential mass-market Bild newspaper and in television studies. Critical media commentaries also appeared concerning large loans towards Borgward Group provided from the local Landesbank.It is apparent how the business was confronting cash-flow difficulties at the end of 1960. Capital intensive businesses including auto manufacturing use their own expensive machines and tools most efficiently should they use them constantly in full capacity, but the car market in Europe from the 1950s/60s was more in season than today, with sales diminishing within Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars at the end of 1960 was beyond usual, reflecting ambitious growth strategies, most obviously in respect of the united states 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 on the 12, 000 delivered to these people) 6, 000 might have being taken back following a slump in American demand. (Borgward was not the sole European auto maker hit by a North American slump popular for imported cars in the course of 1960. In the same season two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
At the conclusion of December 1960 Borgward approached the financial institution for a further a single million Marks of credit history, 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 associated with critical press comment your 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 in the still hostile media, Borgward agreed to your senate’s terms on several February 1961, thereby averting the bankruptcy of the business.The Bremen Senate furthermore insisted on appointing a nominee as chairman of the company’s supervisory board. The man they decided to go with was Johannes Semler who reports generally describe like a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in English, does less than full justice on the breadth of Semler’s vocation. He had studied legislation at university and worked initially as being 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 in the Bavarian establishment that likely included fellow CSU politician and also the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position from 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 individual bankruptcy.
In 28 July 1961 Semler, as Chairman of this supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings with 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 simultaneously protecting the interests regarding creditors. [16] Two months afterwards, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November through the Lloyd business. Subsequent “conspiracy theorists” get suggested that Semler, for reasons of their own, never had any intention of allowing the Borgward auto-businesses to survive.
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