Lloyd as a marque name only entered mass-production of cars and light trucks in 1950 with the company becoming Lloyd Motoren Werke GmbH – still in Bremen. The very first cars (the Lloyd 300) were wood and fabric bodied with steel construction taking over gradually between 1953 and 1954 (Lloyd 400).
The Lloyd 250 was called "Prüfungsangst-Lloyd" ("Lloyd for exam nerves") as they appealed to owners of older driving licenses who could drive it without having to pass a new driving test for cars with a cubic capacity of over 250 cc, a test which was introduced in a legal reform of the mid-1950s. With a power of only 11 hp (DIN), the Lloyd's designers saw a need for saving weight, and thus offered the LP 250 without a back seat, bumpers, hub caps or trims. However, most buyers ordered the LP 250 V with these features as optional extras.
Overall, the vehicles matched the need for small and cheap cars which were a characteristic of post-war Germany, and they provided a comparatively high standard in comfort and reliability. They rose to third place in the annual licensing statistics for several years in the 1950s, behind only Volkswagen and Opel. In spite of this success, there was little prestige to be gained by driving a Lloyd. In the vernacular, the Lloyd 300 was called "Leukoplastbomber" due to the owners' habit of repairing nicks in the fabric of the body with sticking plaster called LEUKOPLAST. A contemporary derisive verse went "Wer den Tod nicht scheut, fährt Lloyd" ("He who is not afraid of death, drives a Lloyd").
Pietro Frua designed a coupé on the basis of the Lloyd Alexander; it was presented at the Turin Motor Show in November 1958.
The parent company failed in 1961 but cars were still made up to 1963. By this time, the LP 900 was named "Borgward Arabella" instead of "Lloyd Arabella".
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