Borgward, a German car brand revived by Beiqi Foton Motor, the truck subsidiary of China’s state-owned automaker BAIC Group, was declared bankrupt in a Beijing court this week.
The ruling was issued by Beijing’s First Intermediate People’s Court, Foton said Wednesday.
Foton said bankrupt Borgward is also seeking court approval to liquidate its assets.
Borgward, once Germany’s third largest automaker, was liquidated in 1961. In 2014, Foton purchased the rights to his Borgward brand and entered the Chinese passenger car market.
Between 2015 and 2019, Borgward rolled out four petrol-powered crossovers in China, the BX3, BX5, BX6 and BX7, as well as a battery version of the BX7. The vehicle was produced at the refurbished Futian factory outside Beijing.
However, the brand failed to achieve meaningful sales and scale.
After peaking at around 55,000 in 2019, Borgward’s annual deliveries fell to around 3,600 in 2021.
Limited sales cost Borgward more than 4 billion yuan ($564 million) in losses from 2016 to 2018.
In 2021 alone, the brand suffered a loss of 4.7 billion yuan, according to Foton’s filings with the Shanghai Stock Exchange, where the company is listed.
Borgward said it plans to start selling the BX7, which is about the same size as the Audi Q5, in Europe in 2018 and plans to open a factory in Bremen, Germany in 2019 to build 10,000 cars a year. I was. However, the factory was never opened.
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