Borgward is said to be bankrupt again
Historic German car brand Borgward is reportedly bankrupt again, almost eight years after its revival was announced to the public.
Automotive News (subscription required) reported last week, citing a statement from Foton, modern-day Borgward’s Chinese supporter, that a Beijing court declared Borgward bankrupt in November.
According to the report, Borgward is now in the process of seeking court approval to liquidate its assets.
Foton is a commercial vehicle brand owned by state-owned Chinese automaker BAIC. It was Borgward’s main source of funding, but in 2018 the company already announced plans to sell a 67 percent stake in Borgward to help raise further funding.
According to filings with the Shanghai Stock Exchange, where Foton is listed, Borgward lost 4.7 billion renminbi (about US$676 million) in 2021 alone, or more than the company’s cumulative losses from 2016 to 2018.
Even among car enthusiasts, the Borgward name is not particularly well known. The original Borgward was founded in Bremen in 1890 and existed until 1961. At times it was Germany’s third largest car brand with impressive models such as the Isabella of the 1950s.
Since the revival, the modern Borgward has launched the BX7, BX6, BX5 and BX3 crossovers. However, sales slowed to a trickle in 2021, reaching just 3,600 units compared to a peak of 55,000 units in 2019.