The Untold Saga of Borgward, the German Car Manufacturer You've Probably Never Heard Of

The automobile industry is no stranger to stories of missteps and massive collapses. From halo and concept cars that fail to captivate consumers to manufacturers like Preston Tucker facing financial ruin, the auto world has witnessed its fair share of dashed dreams.

In this episode of CarStuff, hosts Ben Bowlin and Scott Benjamin share the compelling tale of a German carmaker with a story filled with a self-made entrepreneur, Nazis, potential corruption, redemption — and a collection of stunning, yet forgotten, vehicles.

Carl F. W. Borgward, a German entrepreneur, entered the car industry in 1919 through an automotive parts company named Bremer Reifen-Industrie GmbH. This company eventually evolved into the Borgward brand. Born into modest means with a father working in coal to support Borgward’s twelve siblings, Carl had a deep passion for cars. By 1924, at the age of 34, he created his first vehicle: the Blitzkarren, a compact three-wheeled van tailored for small merchants.

After the Blitzkarren, Borgward introduced the Goliath Pionier, another small three-wheeled two-seater.

The three-wheeled designs were more than just quirky; they were a smart way for Borgward to avoid certain taxes. Since a three-wheeler was classified as a motorcycle, it was taxed at a lower rate than a full car. Even better, no driver’s license was required to operate them. (Though perhaps not so great for other drivers on the road.)

By the 1930s, Borgward's cars were so in demand that buyers faced months of waiting lists. But then a little thing got in the way:

World War II.

Borgward was drafted (whether willingly or not remains up for debate) to manufacture military vehicles for Germany during the war. After the conflict, he served three years in prison for supporting the Nazis — and returned to find his factories in Bremen, Germany, obliterated by Allied bombings.

But Borgward wasn’t one to give up easily. Determined to rebuild, he came up with a creative solution. Given post-war material shortages in Germany, Borgward split his operations into three separate entities: Borgward, Goliath, and Lloyd, each with its own car brand. This strategy allowed each company to receive its share of the limited steel and other resources.

Unfortunately, Borgward may have made a critical misstep. Each of the companies ran its own engineering and purchasing departments, which meant they weren't pooling parts and resources. Developing every single part for each car on your own takes a serious amount of cash.

This mistake didn't have an immediate impact, though, as the 1950s proved to be a prosperous time for Borgward. The company introduced the highly successful Isabella model along with newer Borgward vehicles, featuring innovative technologies such as air-suspension and automatic transmission. By 1959, the company had reported earnings of around $158 million.

However, a 1960 article in the German magazine Der Spiegel threw the company into turmoil. The article revealed that Borgward's fragmented structure left it financially unstable and disorganized. As a result, the city-state of Bremen — where Borgward was based and whose political leadership disliked Carl Borgward — withheld a crucial loan and effectively forced Borgward to surrender control of the company.

And who did they appoint to lead the company? A BMW board member, a direct competitor. Borgward was out of business by 1961, but all its debts were promptly paid off, which casts doubt on claims that the company was in dire financial straits.

Want to know more? Dive deeper into the Borgward saga by listening to the CarStuff podcast, available here or on your preferred podcast platform.