Borgward Hits the Road

Ever since aging German Carmaker Carl Borgward went broke last year (TIME, Feb. 17, 1961), there have been recurrent rumors that his Bremen plants were about to be sold to one or another of Detroit's Big Three. Last week, after six months of quiet negotiation, Borgward was finally sold for $14 million--but not to Detroit. The buyer turned out to be Impulsora Mexicana Automotriz, a consortium recently formed by top Spanish Truckmaker Eduardo Barreiros Rodriguez and a covey of Latin American entrepreneurs, including Bolivian Tin King Antenor Patino and Millionaire Mexico City Lawyer Ernesto Santos Galindo.

Ambitious purpose of the new consortium is to move Borgward's operations to Mexico, which is eagerly trying to build its own auto industry. First to move will be Borgward's body factory, subassembly and assembly plants. Until Mexican technicians can be trained, mechanical parts will be made in Bremen--and production of complete cars for the European market may also be resumed there.

Ultimately, however, Impulsora hopes to turn out 15,000 to 20,000 Mexican-produced Borgward PP 100s and Isabellas each year. In the meantime, the new consortium expects to pick up change by selling spare parts to owners of the thousands of German-made Borgwards still in circulation all around the world.

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