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The first automobile Carl Borgward designed was the Blitzkarren (i.e. lightning cart), which was, in the gap in the market it filled, an enormous success. Traders with a small budget bought it for delivery. The Reichspost ordered many of them for postal service.

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In 1961 the company was forced into liquidation by creditors though Carl Borgward insisted the company was solvent. Events proved him right and all the creditors were fully paid off. In 1963 all manufacturing equipment for the Borgward Isabella and P100 was sold to Mexico. In July 1963 Carl Borgward died, two years after his company went bankrupt. The German magazine Der Spiegel reports in 1965 that, with a little help, the Borgward company could have easily overcome its problems in 1961. Apparently the company didn't have to go bankrupt at all.