Borgward is 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 produced four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has due to the fact been revived by Carl Borgward's grandson, Christian Borgward, together with his lover Karlheinz L. Knöss, with assistance from Chinese language investment, and unveiled the firm's first new car in over 40 years, the BX7 at this 2015 International Motor Present.The origins of Bremen's most significant auto-business get back to 1905 with the institution in nearby Varel from the "Hansa Automobilgesellschaft" and the foundation in Bremen itself regarding "Namag", maker of the Lloyd car or truck. 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 by the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator on the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand the particular scope of his auto business, and he took control from it.
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The first "automobile" Carl Borgward designed was the 1924 Blitzkarren (turbo cart), a sort of small three-wheeled van with 3 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 many for postal service.In 1929, Borgward became the movie director of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had by now evolved into the nonetheless three wheeler timber framed synthetic leather bodied 5 or even 7 hp Goliath Leading. Borgward turned his focus on the other businesses along with led the development in the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 and in 1939 the name was shortened to Borgward 2000. The 2000 model was as well as the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used a lot of the brand names from businesses he had acquired in the past to found three individual companies: Borgward, Goliath and Lloyd. This was intended to increase the number of steel allocated to his business at any given time of austerity and rationing. For many purposes the businesses would be run to be a single entity, but in a business operated by way of a man to whom delegation would not come naturally the spreading of legal entities nonetheless added unhelpful layers of complexity with the 1950s and encouraged a broadening in the range which in the long run proved financially unsustainable while using sales volumes achievable. In 1949 company introduced the Borgward Hansa 1500.Among the top engineers at Borgward from 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella begun in 1954. The Isabella would become Borgward's most in-demand model and remained in production for the life of the organization. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these transforming into a successful Formula Two power unit (which has been also used by a number of F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such since air suspension and programmed transmission, the company had trouble competing available. While larger companies similar to Opel and VW took benefit from economies of scale along with kept their prices low to achieve market share, Borgward's cost structure was even beyond necessary for its sizing, as it basically run as four tiny independent companies and never implemented such basic charge reduction strategies as shared development and parts sharing between company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced like a water-cooled boxer with entrance wheel drive, but plagued with problems such as water leakage and gearbox secrets. Lloyd lost money on the car though it was more expensive as compared to its direct competitors.In 1961, the company was pressured into liquidation by collectors. Carl Borgward died within July 1963, still insisting the company were being technically solvent. This proved to be true inside the sense that after the actual creditors were paid fully, there was still 5. 5 million Marks left over from the business.
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Reports of difficulties at Borgward surfaced in a article that appeared within Germany's leading news newspaper, “Der Spiegel” on 18 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted with a picture of Borgward, cigar in mouth, on the magazine’s front cover. It was strongly important of Carl Borgward's small business approach, and included many from the arguments later advanced to go into detail or justify the businesses demise. The widest range connected with cars from any manufacturer in Germany, produced by three until eventually recently operationally autonomous organizations (Borgward, Goliath and Lloyd) was supporting a turnover associated with only 650 million Scars, placing the overall sales value from the combined Borgward auto corporations only in fifth location among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation of new and modified versions featuring adventurous, but under-developed technological enhancements ("fast manisch[e] Konstruierwut") offered rise to components which many times did not work, broke down or chop down apart, resulting in massive charges for pre-delivery remediation and/or write-up delivery warranty work that found their sources that are to the company.The December 1960 Spiegel article hasn't been the only serious community criticism targeting Borgward presently: suddenly stridently negative (in the event more succinct) comments also turned up in the influential mass-market Bild paper and in television reports. Critical media commentaries additionally appeared concerning large loans on the Borgward Group provided through the local Landesbank.It is apparent that this business was confronting cash-flow difficulties at the conclusion of 1960. Capital intensive businesses such as auto manufacturing use their own expensive machines and tools most efficiently when they use them constantly on full capacity, but the car market in Europe inside the 1950s/60s was more periodic than today, with sales diminishing inside Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was greater than usual, reflecting ambitious growth options, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered through the North American dealers in 1960 (and on the 12, 000 delivered to these) 6, 000 might have to get taken back following a slump in Us demand. (Borgward was not really the only European auto maker hit by a North American slump successful for imported cars while in 1960. In the same calendar year two ships carrying Renault Dauphines were turned back in mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the financial institution 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 agreed to provide. However, following the flood involving critical press comment the senators withdrew their ensure. They now required Carl Borgward to pledge the company itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported in a very still hostile media, Borgward agreed to the actual senate’s terms on some February 1961, thereby averting the bankruptcy on the business.The Bremen Senate likewise insisted on appointing a unique nominee as chairman in the company’s supervisory board. The man they select was Johannes Semler who reports generally describe to be a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated straight into English, does less than full justice towards breadth of Semler’s profession. He had studied rules at university and worked initially as being a lawyer. The scion of a leading Hamburg political family, in 1945 he acquired himself been a founding person in the centre-right CSU gathering, and was a person in the Bundestag between 1950 along with 1953. Despite his Hamburg beginnings, Semler was by this time based in Munich, with a network of contacts within the Bavarian establishment that likely included fellow CSU politician along with 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 as the representative of the Bremen senators to be able to chair the Borgward supervisory table would, in retrospect, contribute to the debate that followed the Borgward personal bankruptcy.
About 28 July 1961 Semler, as Chairman of your 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 the court sanctioned scheme of arrangement enabling this company to continue to trade while concurrently protecting the interests involving creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November with the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of his or her own, never had any intent of allowing the Borgward auto-businesses to survive.
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