Borgward is an automobile manufacturer originally launched by Carl F. W. Borgward. The original company, based in Bremen throughout Germany, ceased operations in the actual 1960s. The Borgward group made four brands of autos: 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 Chinese language investment, and unveiled the businesses first new car within 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 organization in nearby Varel with the "Hansa Automobilgesellschaft" and the foundation in Bremen itself associated with "Namag", maker of the Lloyd car or truck. These two businesses merged in 1914 in order to create the "Hansa-Lloyd-Werke A. G. ". After the war, in the troubled economy then confronting Germany, the business failed to prosper and with the late 1920s faced bankruptcy. For Carl Borgward, already the successful creator from the Goliath-Blitzkarren business, the misfortunes of Hansa-Lloyd presented the opportunity greatly to expand the scope of his car business, and he took control from it.
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The primary "automobile" Carl Borgward developed was the 1924 Blitzkarren (super cart), a sort of very small three-wheeled van with two hp (1. 5 kW), which was an enormous success in the market gap it filled. Traders with a small budget ordered 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 oppertunity to merge his "Goliath-Werke Borgward & Company. " with "Hansa-Lloyd. The small Goliath-Blitzkarren had can't evolved into the however three wheeler timber framed synthetic leather bodied 5 or even 7 hp Goliath Master. Borgward turned his care about the other businesses as well as led the development on 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 as well as the Borgward 2300that stayed in production until 1942.After World War II, in 1946 Carl Borgward used a number of the brand names from companies he had acquired in recent times to found three independent companies: Borgward, Goliath and Lloyd. This was intended to increase the amount of steel allocated to his business at a time of austerity and rationing. For many purposes the businesses would be run as being a single entity, but in a business operated by way of man to whom delegation failed to come naturally the spreading of legal entities however added unhelpful layers of complexity with the 1950s and encouraged a broadening from the range which in the long run proved financially unsustainable with all the sales volumes achievable. In 1949 company presented 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 started out in 1954. The Isabella would become Borgward's most favored model and remained in production to the life of the company. In 1960 the Borgward P100 has been introduced, equipped with pneumatic suspension.Borgward introduced a distinctive line of 1500 cc sports racers inside late 1950s, with the 16-valve engine from these learning to be a successful Formula Two power unit (which was also used by a few F1 privateers in 1961).Although Borgward pioneered technical novelties inside German market such since air suspension and intelligent transmission, the company had trouble competing in the marketplace. While larger companies such as Opel and VW took benefit of economies of scale along with kept their prices low to achieve market share, Borgward's cost structure was even beyond necessary for its size, as it basically operated as four tiny independent companies and don't implemented such basic cost reduction strategies as shared development and parts sharing between your company's makes. Borgward suffered quality problems as well. The Lloyd Arabella was technically advanced being a water-cooled boxer with entry wheel drive, but plagued with problems such as water leakage and gearbox glitches. Lloyd lost money on the car though it was more expensive compared to its direct competitors.In 1961, the company was compelled into liquidation by collectors. Carl Borgward died in July 1963, still insisting the company was technically solvent. This proved to be true inside sense that after your creditors were paid 100 %, there was still 4. 5 million Marks left over from the business.
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Reviews of difficulties at Borgward surfaced in the article that appeared in Germany's leading news mag, “Der Spiegel” on 15 December 1960”. The very long, detailed, and in places recurring Spiegel article was highlighted by using a picture of Borgward, cigar in mouth, on the magazine’s top cover. It was strongly important of Carl Borgward's business approach, and included many with the arguments later advanced to describe or justify the firm's demise. The widest range of cars from any manufacturer in Germany, produced by three until eventually recently operationally autonomous corporations (Borgward, Goliath and Lloyd) has been supporting a turnover of only 650 million Grades, placing the overall sales value in the combined Borgward auto corporations only in fifth position 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 inventions ("fast manisch[e] Konstruierwut") offered rise to components which excessively did not work, broke down or fell apart, resulting in massive costs for pre-delivery remediation and/or submit delivery warranty work that found their in the past to the company.The December 1960 Spiegel article wasn't the only serious open criticism targeting Borgward at the moment: suddenly stridently negative (when more succinct) comments also resulted in in the influential mass-market Bild newspaper and in television studies. Critical media commentaries furthermore appeared concerning large loans for the Borgward Group provided through the local Landesbank.It is apparent which the business was confronting cash-flow difficulties by the end of 1960. Capital intensive businesses including auto manufacturing use their expensive machines and tools most efficiently if they use them constantly in full capacity, but the car market in Europe inside 1950s/60s was more periodic than today, with sales diminishing throughout Winter, then peaking in the early summer months: Borgward’s inventory of unsold cars right at the end of 1960 was more than usual, reflecting ambitious growth ideas, most obviously in respect of the usa market[11] The December 1960 Spiegel article speculated that in the 15, 000 Borgward cars ordered from the North American dealers inside 1960 (and in the 12, 000 delivered to these individuals) 6, 000 might have to be taken back following a slump in American demand. (Borgward was not the sole European auto maker hit with a North American slump successful for imported cars throughout 1960. In the same calendar year two ships carrying Renault Dauphines were turned in mid-Atlantic because the docks in Big apple were overcrowded with unsold Dauphines.
Right at the end of December 1960 Borgward approached the lending company for a further one particular million Marks of credit rating, the loan to be backed with a guarantee from the Bremen regional government which initially the Bremen senators decided to provide. However, following the flood connected with critical press comment the senators withdrew their assurance. They now required Carl Borgward to pledge the organization itself to the state in return for the guarantee. After a tense 13-hour meeting widely reported in a very still hostile media, Borgward agreed to the particular senate’s terms on several February 1961, thereby averting the bankruptcy of the business.The Bremen Senate also insisted on appointing its very own nominee as chairman with the company’s supervisory board. The man they decided was Johannes Semler with whom reports generally describe as a “Wirtschaftsprüfer” (public auditor), though this designation, especially once translated in to English, does less than full justice towards 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 acquired himself been a founding person in the centre-right CSU party, and was a person in the Bundestag between 1950 and 1953. Despite his Hamburg sources, Semler was by now based in Munich, with a network of contacts inside the Bavarian establishment that almost certainly included fellow CSU politician along with the future German chancellor, Ludwig Erhard, who in 1948 had succeeded Semler within a top administrative position inside Bizone. The appointment of Johannes Semler since the representative of the Bremen senators to be able to chair the Borgward supervisory board would, in retrospect, contribute to the controversy that followed the Borgward chapter 7.
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With 28 July 1961 Semler, as Chairman of the supervisory board joined the directors of 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 to continue to trade while while doing so protecting the interests associated with creditors. [16] Two months later on, however, in September 1961, the Borgward and Goliath corporations were declared bankrupt, followed in November from the Lloyd business. Subsequent “conspiracy theorists” include suggested that Semler, for reasons of her own, never had any goal of allowing the Borgward auto-businesses for you to survive.
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