Borgward is an automobile manufacturer originally set up by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the particular 1960s. The Borgward group developed four brands of autos: 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 China investment, and unveiled the corporation's first new car throughout over 40 years, the BX7 at the particular 2015 International Motor Show.The origins of Bremen's most significant auto-business resume 1905 with the place in nearby Varel on the "Hansa Automobilgesellschaft" and the walls in Bremen itself connected with "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to make the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled financial crisis then confronting Germany, the business failed to prosper and by the late 1920s faced individual bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a possibility greatly to expand your scope of his vehicle business, and he took control from it.
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The primary "automobile" Carl Borgward developed was the 1924 Blitzkarren (turbo cart), a sort of very small three-wheeled van with a couple of 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 most of them for postal service.In 1929, Borgward became the overseer of Hansa Lloyd AG having had the opportunity to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the nevertheless three wheeler timber presented synthetic leather bodied 5 or 7 hp Goliath Pioneer. Borgward turned his care about the other businesses along with led the development from the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 in addition to in 1939 the title was shortened to Borgward 2000. The 2000 model was followed by the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from organizations he had acquired through the years to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase how much steel allocated to his business during a period of austerity and rationing. For many purposes the companies would be run to be a single entity, but in a business operated by way of man to whom delegation failed to come naturally the expansion of legal entities on the other hand added unhelpful layers of complexity over the 1950s and encouraged a broadening in the range which eventually proved financially unsustainable with all the sales volumes achievable. In 1949 company presented 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 began in 1954. The Isabella would become Borgward's most in-demand model and remained in production for the life of the firm. In 1960 the Borgward P100 ended up being introduced, equipped with pneumatic suspension.Borgward introduced a type of 1500 cc sports racers from the late 1950s, with the 16-valve engine from these becoming a successful Formula Two power unit (that is also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties from the German market such because air suspension and computerized transmission, the company had trouble competing available. While larger companies like Opel and VW took benefit from economies of scale and also kept their prices low to achieve market share, Borgward's cost structure was even above necessary for its size, as it basically managed as four tiny independent companies and not implemented such basic cost reduction strategies as articulation development and parts sharing between company's makes. Borgward suffered quality problems also. The Lloyd Arabella was technically advanced like a water-cooled boxer with front wheel drive, but plagued with problems for instance water leakage and gearbox errors. Lloyd lost money on the car though it was more expensive than its direct competitors.In 1961, the company was pressured into liquidation by creditors. Carl Borgward died throughout July 1963, still insisting the company ended up technically solvent. This proved to be true inside the sense that after your creditors were paid completely, there was still some. 5 million Marks remaining from the business.
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Reports of difficulties at Borgward surfaced in the article that appeared throughout Germany's leading news magazine, “Der Spiegel” on 15 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 top cover. It was strongly essential of Carl Borgward's company approach, and included many with the arguments later advanced to describe or justify the corporation's demise. The widest range connected with cars from any producer in Germany, produced by three until finally recently operationally autonomous firms (Borgward, Goliath and Lloyd) has been supporting a turnover connected with only 650 million Marks, placing the overall sales value in the combined Borgward auto firms only in fifth position among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence when using increasingly manic proliferation connected with new and modified designs featuring adventurous, but under-developed technological improvements ("fast manisch[e] Konstruierwut") provided rise to components which all too often did not work, broke down or fell apart, resulting in massive payments for pre-delivery remediation and/or article delivery warranty work that found their long ago to the company.The December 1960 Spiegel article had not been the only serious general public criticism targeting Borgward right now: suddenly stridently negative (when more succinct) comments also resulted in in the influential mass-market Bild paper and in television stories. Critical media commentaries furthermore appeared concerning large loans for 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 like auto manufacturing use the expensive machines and tools most efficiently when they use them constantly from full capacity, but the car market in Europe within the 1950s/60s was more seasons than today, with sales diminishing with Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars at the conclusion of 1960 was beyond usual, reflecting ambitious growth plans, most obviously in respect of the united states market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered with the North American dealers with 1960 (and with the 12, 000 delivered to these) 6, 000 might have to be taken back following a slump in North american demand. (Borgward was not the only European auto maker hit by a North American slump successful for imported cars through 1960. In the same season two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in Nyc were overcrowded with unsold Dauphines.
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Right at the end of December 1960 Borgward approached your banker for a further 1 million Marks of credit ratings, the loan to be backed by a guarantee from the Bremen regional government which initially the Bremen senators consented to provide. However, following the flood regarding critical press comment the actual senators withdrew their assurance. They now required Carl Borgward to pledge the corporation 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 the senate’s terms on some February 1961, thereby averting the bankruptcy with the business.The Bremen Senate also insisted on appointing its nominee as chairman on the company’s supervisory board. The man they select was Johannes Semler who reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated directly into English, does less than full justice on the breadth of Semler’s vocation. He had studied law at university and worked initially as being a lawyer. The scion of a top Hamburg political family, in 1945 he received himself been a founding person in the centre-right CSU gathering, and was a person in the Bundestag between 1950 and also 1953. Despite his Hamburg beginnings, Semler was by now based in Munich, with a network of contacts inside 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 top administrative position inside the Bizone. The appointment of Johannes Semler because the representative of the Bremen senators to help chair the Borgward supervisory panel would, in retrospect, contribute to the controversy that followed the Borgward chapter 7.
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About 28 July 1961 Semler, as Chairman of this supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings to the establishment of a “Vergleichsverfahren”, which would have provided to get a court sanctioned scheme of arrangement enabling the business to continue to trade while concurrently protecting the interests associated with creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath businesses were declared bankrupt, followed in November through the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of her own, never had any purpose of allowing the Borgward auto-businesses to survive.
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