Borgward restart becomes a failure: car manufacturer in China goes bankrupt

Created: 07/12/2022, 12:30 p.m

By: Sebastian Oppenheimer

Almost 50 years after the collapse of the Borgward empire, the legendary car brand was revived with Chinese money.

But the restart has now finally failed.

Numerous Chinese car manufacturers want to conquer the European market - mostly with electric cars such as Great Wall with the brands Ora, XPeng or Nio, which are even setting up their own battery changing stations.

A few years ago, the Chinese automobile manufacturer Beiqi Foton Motor took a somewhat different approach: In 2015, it revived the traditional German brand Borgward.

The manufacturer had produced cars and trucks in Bremen until it went bankrupt in the early 1960s.

The first new vehicle was a combustion SUV that was supposed to poach in the VW Tiguan and Ford Kuga segment.

As has now become known, the comeback project has obviously failed.

Borgward restart becomes a failure: car manufacturer in China goes bankrupt

At the end of November 2022, the car brand Borgward was declared officially insolvent by a court in China.

According to Automotive News Europe, a court in the city of Beijing has thus drawn a final line under the revival of the traditional German brand.

Borgward has also applied for approval to liquidate the assets.

The adventure began in 2014 when the founder's grandson Christian Borgward sold the trademark rights to Foton.

The Chinese truck manufacturer wanted to enter the passenger car business and sell SUV models under the Borgward brand in China and Europe.

Borgward's cars were based on the old Saab platform with modernized technology and contemporary design from Germany.

In 2015, Borgward presented the BX7 at the IAA in Frankfurt - now the brand is insolvent in China.

© Arnulf Hettrich/Imago

Borgward restart fails: electric version of the BX-7 was planned

In order to gain a foothold in Europe, a European headquarters of the Borgward Group was first opened in Stuttgart in 2016.

At the end of 2016, the announcement followed that the European market even wanted to set up a production plant for an electric version of the BX7 in Bremen, among other things.

In 2017, Borgward underpinned its European ambitions with a large stand at the IAA and the Isabella Concept.

Eight Chinese brands are now available in Germany.

Top 10: These are the most built cars of all time

View photo gallery

You can find even more exciting car topics in the free newsletter from our partner 24auto.de.

Borgward restart fails: Sales lag far behind production capacities

With the BX7, Borgward's first model was initially introduced in China.

The BX5 followed in 2017, the BX6 in 2018 and the small BX3 in 2020.

The main sales market was China, where a total of 165,000 vehicles were sold in five years.

However, it quickly became apparent that sales were far behind production capacities.

The parent company Foton soon lacked the financial breath for its ambitious European plans.

Only a handful of BX5 and BX7 made it to Germany.

also read

Used electric car: Safe battery check in 15 minutes - that's how much it costs

Audi with a difficult future in the VW Group - new problems and old criticism

In the summer of 2019, the new Borgward owner Ucar canceled the factory construction in Bremen, and the German location was closed in 2020.

Sales figures in China also collapsed this year, and production finally came to a standstill in 2021.

In April 2022, Beijing Borgward then initiated bankruptcy proceedings.

What will remain of Borgward and what will happen to the trademark rights remains to be seen