The People’s Court of China has pronounced automaker Borgward bankrupt again, Automotive News Europe reports citing a statement made by Beiqi Foton Motor Company, the Chinese business that had attempted to revive the classic German brand.
The lawsuit was filed this spring by shareholders concerned about the solvency of the company. In response, Borgward turned to the court for a liquidation of assets and settlement of debts.
The original company named Borgward operated in Germany from 1929 until 1961, selling more than a million cars worldwide throughout these years. It went bankrupt in 1961, but Beiqi Foton Motor re-acquired the trademark rights in 2014 to try and revive the badge as a light passenger car marque for the Chinese domestic market. Christian Borgward, the grandson of the original company founder Karl Borgward, was made the main media person behind the brand.
In 2015–2019, an upgraded Foton factory near Beijing proceeded to assemble gas-powered crossovers BX3, BX5, BX6 and BX7 under Borgward badging. It also made an all-electric car called the Borgward BXi7. All these vehicles were marketed as ‘affordable premium’ products capable of competing against the Germany’s Big Three.
The brand had also planned to enter the international market later on and produce new cars, such as an all-electric coupe named Isabella. In the end, the Isabella never made it to the assembly line. The plans to build a factory in Bremen, Germany also feel through along with others.
At its peak of popularity in the year 2019, Borgward managed to sell 55,000 cars. The number plummeted to a miserable 3,600 units in 2021. Covid restrictions and misguided brand positioning on the market of China were both blamed for the failure.