Borgward facts for kids
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| Private | |
| Industry | Automotive |
| Headquarters | Bremen, Germany |
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Key people
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Carl F. W. Borgward |
| Products | Automobiles |
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Borgward was a car company from Bremen, Germany. It was started by Carl F. W. Borgward (1890–1963). The company made cars under four different brand names: Borgward, Hansa, Goliath, and Lloyd. These cars were sold to many different customers around the world.
The Isabella was one of Germany's most popular cars in the 1950s. It was known as a premium model. The Alexander / Lloyd 600 model offered affordable cars for many working-class drivers. The Borgward group stopped making cars in 1961 after some difficult financial problems.
The Borgward brand was brought back in the 21st century. The new company, Borgward Group AG, was based in Stuttgart. It designed and sold cars made in China. However, this new company also faced financial problems and went out of business in 2022.
History of Borgward Cars
How the Company Started
The story of Borgward began in 1905. Two companies, Hansa Automobilgesellschaft and NAMAG (which made the Lloyd car), were formed near Bremen. In 1914, these two companies joined together to become "Hansa-Lloyd-Werke A.G."
After World War I, Germany faced tough economic times. Hansa-Lloyd struggled and was close to going bankrupt in the late 1920s. Carl Borgward saw this as a chance to grow his own car business. He already had a successful company called Goliath-Blitzkarren. So, he took control of Hansa-Lloyd.
The First Vehicle: Blitzkarren
Carl Borgward's very first vehicle was the 1924 Blitzkarren (which means lightning cart). It was a small, three-wheeled van with only 2 horsepower. This little vehicle was very successful because it filled a need in the market. Small businesses and traders bought it for deliveries. The German postal service, called the Reichspost, also ordered many of them.
Growing with Hansa-Lloyd
In 1929, Carl Borgward became the director of Hansa-Lloyd AG. He had merged his Goliath-Werke Borgward & Co. with Hansa-Lloyd. The small Blitzkarren had grown into the Goliath Pionier, a three-wheeled vehicle with 5 or 7 horsepower.
Borgward then focused on developing new cars. In 1937, the new Hansa Borgward 2000 was released. Its name was shortened to Borgward 2000 in 1939. This model was followed by the Borgward 2300, which was made until 1942.
After World War II, in 1946, Carl Borgward started three separate companies. He used brand names from businesses he had bought over the years: Borgward, Goliath, and Lloyd. He did this to get more steel for his business, as steel was in short supply. Even though they were separate companies on paper, they were mostly run as one big business. In 1949, the company introduced the Borgward Hansa 1500.
Popular Models: Isabella and P100
The production of the famous Borgward Isabella began in 1954. The Isabella became Borgward's most popular car. It was made for as long as the company existed. In 1959, the Borgward P100 was introduced. This car was special because it had a new feature: air suspension.
Borgward in Racing
In the 1950s, Borgward also made 1500 cc sports cars for racing. The powerful 16-valve engine from these cars became very successful. It was used in Formula Two races and even by some private teams in Formula One in 1961.
Why Borgward Closed Down
In 1961, the Borgward company was forced to close by its creditors (people or companies it owed money to). Carl Borgward passed away in July 1963. He always believed that his company was still financially sound. It turned out he was right! After all the creditors were paid back, there was still 4.5 million Marks left over from the business. This made the decision to close the company very controversial.
Reports about Borgward's financial troubles first appeared in a German news magazine called Der Spiegel in December 1960. The article was very critical of Carl Borgward's business style. It said that he made too many different car models, which caused problems. The cars were made by three separate companies (Borgward, Goliath, and Lloyd), which made things complicated.
Carl Borgward, who was 70 years old, insisted on developing many new and updated models. These cars often had new technologies that were not fully tested. This led to parts not working or breaking down, costing the company a lot of money to fix them before selling or under warranty.
Other newspapers and TV reports also started to criticize Borgward. There were also concerns about large loans the company received from a local bank.
Borgward was facing cash problems at the end of 1960. Car companies need to keep their factories busy to make money. But car sales in Europe were slower in winter. Borgward had too many unsold cars at the end of 1960, especially cars meant for the United States market. Der Spiegel magazine suggested that many cars sent to North America might have to be returned.
In December 1960, Borgward asked the bank for more money. The local government in Bremen first agreed to help. But after all the negative news, they changed their minds. They told Carl Borgward that he had to give the company itself to the state in exchange for the help. After a long meeting, Borgward agreed on February 4, 1961, which stopped the company from going bankrupt right away.
The Bremen government also insisted on choosing someone to lead the company's board. They chose a man named Johannes Semler. Some people later believed that Semler never intended for Borgward to survive.
On July 28, 1961, Semler and the directors of the three companies (Borgward, Goliath, and Lloyd) started a process to allow the business to continue trading while paying back its debts. However, just two months later, in September 1961, the Borgward and Goliath businesses were declared bankrupt. The Lloyd business followed in November.
What Happened After the Closure?
In 1966, Der Spiegel magazine published another article. It suggested that Borgward could have survived if it had received a little more support. It also said that Carl Borgward was not good with money and didn't like taking advice from his own financial experts. He preferred to delay paying his suppliers instead of getting loans from banks. By late 1960, he owed over 100 million Marks for things like metal and tires. Since all the company's creditors were eventually paid back in full, it seemed the decision to close the company was made too soon.
Borgward Cars Made in Other Countries
Production in Argentina
Borgward Argentina was started in 1954. It was a partnership between Carl F. Borgward HMBH and IAME (an Argentine company). They planned to put Borgward engines into a small pickup truck called the IAME Rastrojero. The engines were made in a factory near Buenos Aires, producing 20 engines a day.
The Borgward Isabella car was also made in Cordoba, Argentina, starting in 1960. These cars used Argentine engines and local parts like glass, batteries, and tires. When the main Borgward company in Germany closed in 1961, the Argentine operation continued for a short time. They made a total of 1,050 cars there.
Production in Mexico
After the bankruptcy, in 1963, all the equipment for making the Borgward Isabella and P100 was sold to a buyer in Monterrey, Mexico. Production in Mexico started in August 1967, led by a businessman named Gregorio Ramirez Gonzalez. Borgward car production in Mexico stopped in 1970.
Borgward's Return
In 2008, the Borgward Group AG was formed by Christian Borgward (Carl F. W. Borgward's grandson) and Karlheinz L. Knöss. The new company later moved to Stuttgart. With money and manufacturing help from Foton Motor (a part of a big Chinese car group called BAIC), the Borgward group started selling SUVs by January 2017.
However, this new company also faced financial difficulties and filed for bankruptcy in Beijing on April 8, 2022.
Borgward Models
Cars
- Borgward 2000
- Borgward 2300
- Borgward Arabella
- Borgward Hansa 1500
- Borgward Hansa 1800
- Borgward Hansa 1800 D
- Borgward Hansa 2400
- Borgward Isabella
- Borgward P100
- Borgward 230
Trucks
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- Borgward B 611
- Borgward B 622
- Borgward B 655
- Borgward B 1000
- Borgward B 1000Z
- Borgward B 1250
- Borgward B 1500
- Borgward B 1500F
- Borgward B 2000
- Borgward B 2500
- Borgward B 3000
- Borgward B 4000
- Borgward B 4500
- Borgward B 522
- Borgward B 533
- Borgward B 544
- Borgward B 555
Military Vehicles
- Sd.Kfz. 301 Borgward B IV
- Sd.Kfz. 302/303a/303b Goliath tracked mine
Aircraft
Helicopters
- Borgward Kolibri
See also
In Spanish: Borgward para niños
- List of automobile manufacturers
