Borgward is surely an automobile manufacturer originally founded by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in this 1960s. The Borgward group created four brands of cars: Borgward, Hansa, Goliath and Lloyd.The marque has given that been revived by Carl Borgward's grandson, Christian Borgward, together with his partner Karlheinz L. Knöss, with assistance from Chinese investment, and unveiled the business's first new car throughout over 40 years, the BX7 at the actual 2015 International Motor Display.The origins of Bremen's most significant auto-business return to 1905 with the institution in nearby Varel with the "Hansa Automobilgesellschaft" and the inspiration in Bremen itself regarding "Namag", maker of the Lloyd automobile. These two businesses merged in 1914 to the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economic situation then confronting Germany, the business failed to prosper and because of the late 1920s faced personal bankruptcy. For Carl Borgward, already the successful creator of the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented a chance greatly to expand your scope of his vehicle business, and he took control than it.
The 1st "automobile" Carl Borgward intended was the 1924 Blitzkarren (turbo 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 purchased for delivery. The Reichspost ordered many of them for postal service.In 1929, Borgward became the representative of Hansa Lloyd AG having gotten to merge his "Goliath-Werke Borgward & Corp. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had chances are evolved into the nonetheless three wheeler timber presented synthetic leather bodied 5 or perhaps 7 hp Goliath Master. Borgward turned his focus on the other businesses and led the development from the Hansa Konsul. In February 1937, there came the brand-new Hansa Borgward 2000 and in 1939 the brand was shortened to Borgward 2000. The 2000 model was accompanied by the Borgward 2300that continued to be in production until 1942.After World War II, in 1946 Carl Borgward used many of the brand names from companies he had acquired over time to found three distinct companies: Borgward, Goliath and Lloyd. This was intended to increase the quality of steel allocated to his business during a period of austerity and rationing. For many purposes the businesses would be run as a single entity, but in a business operated by a man to whom delegation would not come naturally the spreading of legal entities even so added unhelpful layers of complexity with the 1950s and encouraged a broadening in the range which finally proved financially unsustainable with the sales volumes achievable. In 1949 company shown the Borgward Hansa 1500.One of several 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 to the life of the corporation. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a brand of 1500 cc sports racers inside the late 1950s, with the 16-valve engine from these to become successful Formula Two power unit (that has been also used by many F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such because air suspension and intelligent transmission, the company had trouble competing available. While larger companies similar to Opel and VW took benefit of economies of scale and kept their prices low to find market share, Borgward's cost structure was even greater than necessary for its size, as it basically controlled as four tiny independent companies and do not implemented such basic charge reduction strategies as mutual development and parts sharing involving the company's makes. Borgward suffered quality problems likewise. The Lloyd Arabella was technically advanced to be a water-cooled boxer with front wheel drive, but plagued with problems including water leakage and gearbox mistakes. Lloyd lost money on the car just about the most was more expensive compared to its direct competitors.In 1961, the company was required into liquidation by lenders. Carl Borgward died within July 1963, still insisting the company have been technically solvent. This proved to be true from the sense that after your creditors were paid entirely, there was still some. 5 million Marks left from the business.
Reports of difficulties at Borgward surfaced within the article that appeared with Germany's leading news magazine, “Der Spiegel” on 14 December 1960”. The very long, detailed, and in places similar Spiegel article was highlighted by way of a picture of Borgward, cigar in mouth, on the magazine’s entrance cover. It was strongly critical of Carl Borgward's business approach, and included many from the arguments later advanced to describe or justify the company's demise. The widest range associated with cars from any company in Germany, produced by three till recently operationally autonomous firms (Borgward, Goliath and Lloyd) ended up being supporting a turnover connected with only 650 million Represents, placing the overall sales value from your combined Borgward auto businesses only in fifth position among Germany's auto-makers. The 70-year-old Carl Borgward's "hands-on" insistence by using an increasingly manic proliferation regarding new and modified products featuring adventurous, but under-developed technological inventions ("fast manisch[e] Konstruierwut") gave rise to components which excessively did not work, broke down or fell into apart, resulting in massive costs for pre-delivery remediation and/or write-up delivery warranty work that found their made use of to the company.The December 1960 Spiegel article wasn't the only serious open public criticism targeting Borgward right now: suddenly stridently negative (in the event that more succinct) comments also turned up in the influential mass-market Bild newspaper and in television studies. Critical media commentaries additionally appeared concerning large loans towards the Borgward Group provided with the local Landesbank.It is apparent that this business was confronting cash-flow difficulties by the end of 1960. Capital intensive businesses for instance auto manufacturing use the expensive machines and tools most efficiently whenever they use them constantly from full capacity, but the car market in Europe in the 1950s/60s was more seasons than today, with sales diminishing within Winter, then peaking in earlier summer months: Borgward’s inventory of unsold cars by the end of 1960 was greater than usual, reflecting ambitious growth strategies, most obviously in respect of north america market[11] The December 1960 Spiegel article speculated that with the 15, 000 Borgward cars ordered because of the North American dealers inside 1960 (and of the 12, 000 delivered to all of them) 6, 000 might have for being taken back following a slump in Us demand. (Borgward was not the only real European auto maker hit by way of a North American slump widely used for imported cars in the course of 1960. In the same season two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in Ny were overcrowded with unsold Dauphines.
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By the end of December 1960 Borgward approached the lender for a further one million Marks of credit rating, the loan to be backed by way of a guarantee from the Bremen local government which initially the Bremen senators decided to provide. However, following the flood associated with critical press comment your senators withdrew their guarantee. 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 still hostile media, Borgward agreed to the senate’s terms on 4 February 1961, thereby averting the bankruptcy of the business.The Bremen Senate likewise insisted on appointing its very own nominee as chairman with the company’s supervisory board. The man they select was Johannes Semler which reports generally describe as being a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated straight into English, does less than full justice towards breadth of Semler’s vocation. He had studied law at university and worked initially like a lawyer. The scion of a number one Hamburg political family, in 1945 he experienced himself been a founding member of the centre-right CSU celebration, and was a person in the Bundestag between 1950 and 1953. Despite his Hamburg origins, Semler was by these times based in Munich, with a network of contacts inside Bavarian establishment that most likely included fellow CSU politician along with 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 representative of the Bremen senators to be able to chair the Borgward supervisory aboard would, in retrospect, contribute to the hot debate that followed the Borgward bankruptcy.
About 28 July 1961 Semler, as Chairman of the particular supervisory board joined the directors in the three companies Borgward, Goliath and Lloyd to instigate proceedings for that establishment of a “Vergleichsverfahren”, which would have provided for a court sanctioned scheme of arrangement enabling the business enterprise to continue to trade while simultaneously protecting the interests of creditors. [16] Two months later on, however, in September 1961, the Borgward and Goliath firms were declared bankrupt, followed in November because of the Lloyd business. Subsequent “conspiracy theorists” have suggested that Semler, for reasons of his own, never had any intention of allowing the Borgward auto-businesses to be able to survive.
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