Borgward is an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen with Germany, ceased operations in your 1960s. The Borgward group developed four brands of cars and trucks: Borgward, Hansa, Goliath and Lloyd.The marque has considering that been revived by Carl Borgward's grandson, Christian Borgward, together with his partner Karlheinz L. Knöss, with assistance from Far east investment, and unveiled the corporation's first new car inside over 40 years, the BX7 at your 2015 International Motor Demonstrate.The origins of Bremen's most significant auto-business return to 1905 with the business in nearby Varel from the "Hansa Automobilgesellschaft" and the walls in Bremen itself of "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 financial situation then confronting Germany, the business failed to prosper and from the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator in the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a chance greatly to expand the particular scope of his auto business, and he took control from it.
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The 1st "automobile" Carl Borgward developed was the 1924 Blitzkarren (super 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 purchased for delivery. The Reichspost ordered most of them for postal service.In 1929, Borgward became the movie director 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 nevertheless three wheeler timber framed synthetic leather bodied 5 or 7 hp Goliath Leading. Borgward turned his care about the other businesses and led the development from the Hansa Konsul. In February 1937, there came the fresh Hansa Borgward 2000 and in 1939 the label was shortened to Borgward 2000. The 2000 model was then the Borgward 2300that continued in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from companies he had acquired through the years to found three different companies: Borgward, Goliath and Lloyd. This was intended to increase how much steel allocated to his business at a time of austerity and rationing. For many purposes the lenders would be run as being a single entity, but in a business operated by way of man to whom delegation wouldn't come naturally the growth of legal entities nevertheless added unhelpful layers of complexity with the 1950s and encouraged a broadening with the range which in the long run proved financially unsustainable while using the sales volumes achievable. In 1949 company displayed the Borgward Hansa 1500.One of many top engineers at Borgward via 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 that life of the business. In 1960 the Borgward P100 was 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 transforming into a successful Formula Two power unit (that has been also used by several F1 privateers in 1961).Although Borgward pioneered technical novelties in the German market such seeing that air suspension and intelligent transmission, the company had trouble competing in the market. While larger companies including Opel and VW took selling point of economies of scale along with kept their prices low to find market share, Borgward's cost structure was even above necessary for its measurement, as it basically handled as four tiny independent companies and do not implemented such basic price tag reduction strategies as joint development and parts sharing between the company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced to be a water-cooled boxer with entry wheel drive, but plagued with problems such as water leakage and gearbox snags. Lloyd lost money on the car community . was more expensive when compared with its direct competitors.In 1961, the company was compelled into liquidation by credit card companies. Carl Borgward died with July 1963, still insisting the company was technically solvent. This proved to be true inside the sense that after the particular creditors were paid in full, there was still some. 5 million Marks remaining from the business.
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Stories of difficulties at Borgward surfaced within the article that appeared throughout Germany's leading news mag, “Der Spiegel” on fourteen 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 essential of Carl Borgward's small business approach, and included many from the arguments later advanced to spell out or justify the firm's demise. The widest range regarding cars from any manufacturer in Germany, produced by three until recently operationally autonomous corporations (Borgward, Goliath and Lloyd) ended up being supporting a turnover involving only 650 million Represents, placing the overall sales value from your combined Borgward auto businesses only in fifth placement among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence while on an increasingly manic proliferation involving new and modified products featuring adventurous, but under-developed technological innovative developments ("fast manisch[e] Konstruierwut") afforded rise to components which too often did not work, broke down or fell apart, resulting in massive expenses for pre-delivery remediation and/or post delivery warranty work that found their in the past to the company.The December 1960 Spiegel article had not been the only serious open criticism targeting Borgward at this time: suddenly stridently negative (if more succinct) comments also turned up in the influential mass-market Bild magazine and in television reports. Critical media commentaries also appeared concerning large loans towards the Borgward Group provided by the local Landesbank.It is apparent the business was confronting cash-flow difficulties towards the end of 1960. Capital intensive businesses for example auto manufacturing use their particular expensive machines and tools most efficiently if they use them constantly from full capacity, but the car market in Europe in the 1950s/60s was more periodic than today, with sales diminishing within Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars towards the end of 1960 was beyond usual, reflecting ambitious growth programs, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that on the 15, 000 Borgward cars ordered with the North American dealers inside 1960 (and on the 12, 000 delivered to them) 6, 000 might have to be taken back following a slump in American demand. (Borgward was not the only real European auto maker hit by a North American slump widely used for imported cars while in 1960. In the same calendar year two ships carrying Renault Dauphines were turned the government financial aid mid-Atlantic because the docks in The big apple were overcrowded with unsold Dauphines.
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Towards the end of December 1960 Borgward approached the lender for a further one particular million Marks of credit ratings, the loan to be backed by the guarantee from the Bremen local government which initially the Bremen senators consented to provide. However, following the flood associated with critical press comment the actual senators withdrew their promise. They now required Carl Borgward to pledge the corporation itself to the state in substitution for the guarantee. After a tense 13-hour meeting widely reported in a still hostile media, Borgward agreed to the actual senate’s terms on four February 1961, thereby averting the bankruptcy with the business.The Bremen Senate additionally insisted on appointing a unique nominee as chairman of the company’s supervisory board. The man they select was Johannes Semler with whom reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated straight into English, does less than full justice for the breadth of Semler’s occupation. He had studied law at university and worked initially to be 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 origins, Semler was by this time around based in Munich, with a network of contacts from the Bavarian establishment that probably included fellow CSU politician as well as the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler in the top administrative position inside the Bizone. The appointment of Johannes Semler because representative of the Bremen senators to help chair the Borgward supervisory panel would, in retrospect, contribute to the controversy that followed the Borgward a bankruptcy proceeding.
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In 28 July 1961 Semler, as Chairman of your supervisory board joined the directors of the three companies Borgward, Goliath and Lloyd to instigate proceedings to the establishment of a “Vergleichsverfahren”, which would have provided for the court sanctioned scheme of arrangement enabling the business to continue to trade while as well protecting the interests associated with creditors. [16] Two months in the future, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” possess suggested that Semler, for reasons of their own, never had any intent of allowing the Borgward auto-businesses to help survive.
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