Borgward reportedly bankrupt again
The historic German car brand Borgward is reportedly bankrupt again, nearly eight years after its resurrection was announced to the public.
Automotive News (subscription required) reported last week that a Beijing court declared Borgward bankrupt in November, citing a statement from Foton, a Chinese backer of Hyundai Borgward.
Borgward is currently seeking court approval to liquidate its assets, it said.
Foton is a commercial vehicle brand that forms part of Chinese state-owned automaker BAIC. It was Borgward's main source of funding, but in 2018 the company has already announced plans to sell a 67% stake in Borgward to help raise more capital.
According to filings with the Shanghai Stock Exchange, where Foton is listed, Borgward lost RMB 4.7 billion ($676 million) in 2021 alone, more than the company's cumulative losses from 2016 to 2018.
Even among automotive enthusiasts, the Borgward name is not particularly well known. The original Borgward was founded in Bremen in 1890 and lasted until 1961; with impressive models like the Isabella of the 1950s, it was at one time Germany's third largest car brand.
After its revival, modern Borgward launched the BX7, BX6, BX5, and BX3 crossovers. However, sales slowed in 2021, reaching only 3,600 units from a peak of 55,000 in 2019.
