Borgward car brand has filed for bankruptcy

The bankruptcy process of Borgward Automobile began in China - the owner of company is the Chinese automaker Foton Motor.  The company's appeal has already been submitted to the court of Beijing.  The idea to apply to the court on April 8 was supported by the company's shareholders.  It is assumed that the organization, registered on the territory of Germany, will be liquidated, unless a miracle happens and the Borgward trademark is not redeemed by any interested investor.

The legendary brand of cars appeared in 1929.  In 2008, an attempt to release Borgward cars on the world market was made by the grandson of the creator of the brand, Christian Borgward.  He founded Borgward Group AG in Germany and soon secured investment support from a Chinese automaker.  However, the revival of the legendary car did not happen.

By 2015, the first model was introduced to the market,and production of crossovers has been launched.

But the business was not as successful as investors from the Celestial Empire had originally assumed.  As a result, in 2018, the Chinese company UCar Group bought out a controlling stake, having increased its share to 75.2%.

 In 2019, there was a chance that Borgward crossovers would begin to compete with other car brands in the Chinese market - up to 45,000 vehicles were sold.  But the pandemic has reduced the achievements to almost zero.  In 2020, the company sold 8,703 vehicles, and by mid-2021, it stopped production because it was under arrest due to debts.

Sources estimate the company's debt to creditors at 5.33 billion yuan ($836 million).

In Russia and Europe, brand crossovers have not gained popularity, despite obtaining the necessary certificates (Borgward BX7 received a certificate for the Russian Federation in 2018). China has been the main market for the brand in recent years.