Borgward is an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen within Germany, ceased operations in this 1960s. The Borgward group developed four brands of automobiles: Borgward, Hansa, Goliath and Lloyd.The marque has since been revived by Carl Borgward's grand son, Christian Borgward, together with his associate Karlheinz L. Knöss, with assistance from Oriental investment, and unveiled the company's first new car with over 40 years, the BX7 at your 2015 International Motor Indicate.The origins of Bremen's most significant auto-business get back to 1905 with the business in nearby Varel of the "Hansa Automobilgesellschaft" and the walls in Bremen itself regarding "Namag", maker of the Lloyd vehicle. 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 through the late 1920s faced chapter 7. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented an opportunity greatly to expand the particular scope of his vehicle business, and he took control of it.
The primary "automobile" Carl Borgward intended was the 1924 Blitzkarren (super cart), a sort of tiny three-wheeled van with a couple of hp (1. 5 kW), which was an enormous success out there 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 representative of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had right now evolved into the even now three wheeler timber presented synthetic leather bodied 5 or 7 hp Goliath Founder. Borgward turned his care about the other businesses along with led the development of the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 along with in 1939 the label was shortened to Borgward 2000. The 2000 model was followed by the Borgward 2300that remained in production until 1942.After World War II, in 1946 Carl Borgward used some of the brand names from companies he had acquired through the years to found three separate companies: Borgward, Goliath and Lloyd. This was intended to increase the amount of steel allocated to his business each time of austerity and rationing. For many purposes the lenders would be run being a single entity, but in a business operated by way of man to whom delegation did not come naturally the growth of legal entities however added unhelpful layers of complexity from the 1950s and encouraged a broadening from the range which ultimately proved financially unsustainable with the sales volumes achievable. In 1949 company presented the Borgward Hansa 1500.On the list of top engineers at Borgward via 1938-1952 was Dipl. Ing. Hubert M. Meingast.Production of the Borgward Isabella commenced in 1954. The Isabella would become Borgward's most in-demand model and remained in production for your life of the organization. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a distinct 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these being a successful Formula Two power unit (that is also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such as air suspension and computerized transmission, the company had trouble competing in the market. While larger companies similar to Opel and VW took advantage of economies of scale as well as kept their prices low to get market share, Borgward's cost structure was even above necessary for its sizing, as it basically run as four tiny independent companies and never implemented such basic price reduction strategies as combined development and parts sharing between company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced like a water-cooled boxer with top wheel drive, but plagued with problems such as water leakage and gearbox errors. 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 credit card companies. Carl Borgward died in July 1963, still insisting the company was technically solvent. This proved to be true in the sense that after your creditors were paid completely, there was still 5. 5 million Marks remaining from the business.
Reviews of difficulties at Borgward surfaced in the article that appeared in Germany's leading news magazine, “Der Spiegel” on 15 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted with a picture of Borgward, cigar in mouth, on the magazine’s entry cover. It was strongly crucial of Carl Borgward's business approach, and included many with the arguments later advanced to spell out or justify the company's demise. The widest range of cars from any manufacturer in Germany, produced by three until recently operationally autonomous companies (Borgward, Goliath and Lloyd) seemed to be supporting a turnover involving only 650 million Grades, placing the overall sales value from your combined Borgward auto corporations only in fifth placement among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence with an increasingly manic proliferation of new and modified models featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") afforded rise to components which many times did not work, broke down or fell apart, resulting in massive payments 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 presently: suddenly stridently negative (if more succinct) comments also resulted in in the influential mass-market Bild magazine and in television reports. Critical media commentaries furthermore appeared concerning large loans on the Borgward Group provided by 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 as long as they use them constantly with full capacity, but the car market in Europe inside 1950s/60s was more periodic than today, with sales diminishing in Winter, then peaking in their early summer months: Borgward’s inventory of unsold cars at the end of 1960 was more than usual, reflecting ambitious growth plans, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered by the North American dealers in 1960 (and on the 12, 000 delivered to these) 6, 000 might have being taken back following a slump in American demand. (Borgward was not the only European auto maker hit with a North American slump sought after for imported cars during 1960. In the same year two ships carrying Renault Dauphines were turned last mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
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 by a guarantee from the Bremen local government which initially the Bremen senators decided provide. However, following the flood regarding critical press comment your senators withdrew their guarantee. They now required Carl Borgward to pledge this company 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 the actual senate’s terms on several February 1961, thereby averting the bankruptcy with the business.The Bremen Senate additionally insisted on appointing a nominee as chairman in the company’s supervisory board. The man they selected was Johannes Semler which reports generally describe being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated into English, does less than full justice on the breadth of Semler’s vocation. He had studied legislation at university and worked initially to be a lawyer. The scion of a number one Hamburg political family, in 1945 he received himself been a founding person in the centre-right CSU gathering, and was a member of the Bundestag between 1950 in addition to 1953. Despite his Hamburg beginning, Semler was by this time based in Munich, with a network of contacts within the Bavarian establishment that possibly 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 from the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators for you to chair the Borgward supervisory mother board would, in retrospect, contribute to the debate that followed the Borgward a bankruptcy proceeding.
On 28 July 1961 Semler, as Chairman of the actual 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 to get a court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while at the same time protecting the interests involving creditors. [16] Two months later, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November through the Lloyd business. Subsequent “conspiracy theorists” have got suggested that Semler, for reasons of his own, never had any goal of allowing the Borgward auto-businesses for you to survive.
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