In 2014, Foton Motor bought the Borgward Automobile brand from Borgward AG for 5 million euros, brought it to China, and shaved out of the grave of this "luxury car brand" that had been dead for half a century. Unfortunately, Borgward may be buried in the grave from Foton Motors again.
According to the information of Tianyancha, in the related case with first planning (Beijing) Culture Co., Ltd., the executor Borgward Automobile has no property to execute. According to the enforcement ruling of the Third Intermediate People's Court of Beijing Municipality, first planning (Beijing) Culture Co., Ltd. applied to the court to enforce about 2.07 million yuan and interest of Borgward Automobile, and the court inquired about the account, house ownership, vehicle registration and industrial and commercial registration of the judgment debtor and found that the judgment debtor had no property to enforce.
This means that today's Borgward cars may only have an empty shell, just like the red stripe came to China 8 years ago. In the course of 8 years, Borgward Automobile has been regarded by Foton Automobile as an important measure of "business and ride", and has been reprimanded by Foton Automobile to maintain its development with huge funds, and has also been resold by Foton Automobile as an outcast to Shenzhou-based enterprises. Of course, Foton has also been dragged down, even directly because of the impairment of Borgward Automobile, a huge loss of more than 5 billion.
Borgward, which sold tens of billions of dollars, was bottomed out by 2 million debts
No one would have thought that about 2.07 million yuan and interest would completely surface the barren side of Borgward Automobile.
It is rumored that Foton Automobile invested tens of billions of dollars in Borgward Automobile before and after that year, and Foton Automobile's later Borgward Automobile did not only have a factory but also an overseas R & D and design team. Borgward, which has sold tens of billions of dollars, has given Foton Automobile a little confidence when selling it.
In November 2018, Foton Motor officially put 67% of the equity of Borgward Automobile on the shelves, and a month later, Changsheng Xingye (Shenzhou) took control of Borgward for 3.973 billion yuan, in addition to which the two parties also agreed to repay the 4.271 billion yuan of shareholder loans owed to Foton Automobile in installments within three years (later increased to 4.67 billion yuan). Perhaps, Borgward Automobile did not think that it might be the highlight moment of its assets, after all, according to the data at that time, the valuation of Borgward Automobile exceeded 6 billion yuan.
No matter how bad it is, it will not even be possible to repay the 2.07 million yuan and interest. Note: It is impossible to afford to raid the house. Speaking of which, I also have to blame Foton Motor for not talking to Borgward At all.
In December 2021, Foton Motor announced that the relevant assets of Beijing Borgward Automobile Co., Ltd. were seized by the Third Intermediate People's Court of Beijing Municipality, and the book value of the seized property was 2.209 billion yuan. According to the announcement, the seized property of Borgward Automobile includes machinery and equipment, transportation equipment, office equipment, IT equipment, construction in progress, inventory, etc.
It is worth mentioning that the announcement at the time mentioned that Foton Motor had applied for the seizure of Borgward's related assets on November 11, and the court had not yet implemented it. Perhaps, even if the creditors did not apply for the seizure of Borgward Automobile's related assets at that time, the relevant assets of Borgward Automobile would be seized by Foton Automobile.
Of course, for its own interests, Foton is also collecting debts from the controlling shareholder of Borgward Automobile. Shortly before the announcement of the asset seizure of Borgward Automobile, Foton issued an announcement that Beijing Borgward Automobile Co., Ltd. had not repaid the loan to the company, and in order to safeguard the legitimate rights and interests of the company, the company applied to the Beijing Arbitration Commission for arbitration and preservation, and the Beijing Arbitration Commission submitted the application for interim measures to the Beijing No. 1 Intermediate People's Court. Previously, Foton Motor disclosed in an announcement in September last year that Borgward Automobile's operating conditions have deteriorated, there are great risks in production and operation, and from its operating status and specific financial data, it does not have the ability to repay debts.
Combined with the above news, Borgward Automobile can be regarded as no car to produce, no car to buy, one of the two shareholders has no time to take care of it, the other does not leave the slightest sentiment, perhaps waiting for Borgward Automobile only to disappear or be changed hands two ways. As for why Foton Automobile does not give Borgward a merciless point, it is also necessary to start from the damage that Borgward Automobile brought to Foton Automobile.
Buy it, sell it Foton Motor lost a bottom
On January 29 this year, Foton Motor issued the "2021 Annual Performance Pre-Loss Announcement", according to the content of the announcement, Foton Motor's net profit attributable to shareholders of listed companies in 2021 is expected to be about -5.035 billion yuan. Such a large loss, in the history of Foton Motor can also be called "unprecedented", it is worth mentioning that in 2021, Foton Motor sold a total of about 650,000 models of various types throughout the year, and according to the official website news, this year Foton Motor successfully ranked first in the commercial vehicle industry.
650,000 cars can't sell for profit? Obviously not! According to the announcement of Foton Motor, the company's performance pre-loss is mainly due to the impact of the impairment of related matters of Beijing Borgward Automobile Co., Ltd. in the current period, and this part of the impact is as much as -5.326 billion yuan.
According to the announcement of Foton Motor, this part of the impairment includes, The balance and interest of Beijing Borgward's equity transfer were 1.671 billion yuan, and the impairment was about 995 million yuan in the reporting period, with a cumulative impairment of about 1.650 billion yuan; the borrowing and interest of Beijing Borgward shareholders was 1.873 billion yuan, and the impairment was about 1.387 billion yuan in the reporting period, with a cumulative impairment of about 1.813 billion yuan; Beijing Borgward's current arrears were 1.485 billion yuan, and the impairment was about 1.014 billion yuan in the reporting period, with a cumulative impairment of about 1.342 billion yuan; long-term equity investment was 534 million yuan, and the full impairment was recorded in the reporting period; and the recovery of Borgward vehicle assets was 1.456 billion yuan, and the impairment was made after considering the recoverable value About 74 billion yuan; the total profit affected by the above impairment is expected to be -4.704 billion yuan.
Foton Motor announced that the total profit of listed companies is expected to be -5.326 billion yuan, taking into account the company's total impact on the investment income from the equity recognition of Beijing Borgward. What is this concept, Borgward Automobile's 67% stake has sold more than 4 billion yuan, and Foton Automobile has lost more than 5 billion yuan after selling Borgward Automobile. In this case, will Foton Give Borgward a merciful score?
And that's just a year. From the commissioning of Borgward Automobile in 2016 to the transfer in 2018, Foton Motor's three-year net profit attributable to the mother was 567 million yuan, 112 million yuan and -3.575 billion yuan, respectively, and the net profit attributable to the mother of Borgward Automobile was -484 million yuan, -985 million yuan and -2.545 billion yuan. The data shows that Borgward Automobile has not dragged Foton Automobile for a year or two, and the legendary investment of tens of billions may be less.
In fact, from the history of Borgward Automobile, it has arisen from the sale of Foton Motors, but it has also been destroyed. After Shenzhou entered Borgward Automobile in 2019, UCAR and Borgward Automobile released a new strategy to launch the new retail platform of Borgward Automobile, and launched the "Thousand Cities and Thousands of Stores" through industrial chain transformation and platform empowerment, claiming to fully realize the separation of production and marketing, reshape channels, reconstruct automobile consumption, and redefine new retail of automobiles. However, this model initially triggered the dissatisfaction of Borgward's original dealers, and dealers frequently withdrew from the network.
Of course, because of the purchase of Shenzhou car rental, Borgward's car sales rose to 54,500 units that year, reaching the peak of the brand. However, in addition to renting the cars purchased by China Car Rental to C-end customers, it also provides special car business for UCAR, and in a sense, Borgward Automobile has become a "car supply platform" of the Shenzhou department. With the decline in the performance of Shenzhou car rental, the sales volume of Borgward Automobile in 2020 has also dropped significantly, with a cumulative sales of only 8740 new cars. Until it became the role of "deteriorating business conditions and greater risks in production and operation" in Futian's announcement, it became a role that could not afford to pay 2.07 million yuan.
The brand, which was cut out of the grave by Foton Motor's own hands, may eventually be sent back to the grave little by little from Foton Motor.