A few days ago, according to media reports, the entire store of Borgward Automobile stopped selling, after-sales service could not be done, and the lifelong warranty could not be cashed.
According to the information of tianyancha App, in the case related to the First Planning (Beijing) Culture Co., Ltd., the executor Borgward Automobile has no property to execute.
According to the ruling, 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, ownership of the house, vehicle registration and industrial and commercial registration of the judgment debtor and found that the judgment debtor had no property to enforce. At present, the applicant for enforcement has agreed to terminate the enforcement procedure.
"The shop is yellow, no longer sell cars, after-sales service can not be done, the country's stores have stopped selling cars, the company is bankrupt." A manager at the Borgward Automobile sales store in Beijing said.
The information of the car quality network also shows that since the beginning of this year, a number of Borgward car owners have complained that the vehicle maintenance has no accessories, the lifelong warranty cannot be cashed, and the Borgward manufacturer has been unable to ship stably.
A staff member of the Borgward Automobile Customer Service Center said that there is no notice of bankruptcy from the company at present, but all the car stores have suspended sales and have been closed. He also said that the sales and after-sales of Borgward Automobile are separated, and the after-sales problems should go to Borgward's car repair outlets, and the vehicle after-sales business is still being carried out.
According to the official website of Borgward Automobile, there are currently six models on sale, namely BX7, BX7 TS, BX5, BX3, BXi7 and BX6. However, in June last year, the sales manager of Borgward Automobile in Beijing said that at that time, only three models were mainly sold, namely BX7, BX5 and BX3. In addition, it was also learned that since July last year, Borgward Automobile has been in arrears of wages.
In December last year, Foton Motor announced that the assets related to Beijing Borgward Automobile were seized by the Third Intermediate People's Court of Beijing Municipality, involving a book property value of 2.209 billion yuan. Foton Motor also said in an announcement in September last year that the operating conditions of Borgward Automobile have deteriorated, there are great risks in production and operation, and from the perspective of its operating status and specific financial data, it does not have the ability to repay debts.
It is understood that before UCAR joined Borgward Automobile, Borgward Automobile was wholly owned by Beiqi Foton.
From the commissioning of Borgward in 2016 to the transfer in 2018, the net profit attributable to beiqi Foton in three years was 567 million yuan, 112 million yuan and -3.575 billion yuan, respectively, and the net profit attributable to Borgward Automobile was -484 million yuan, -985 million yuan and -2.545 billion yuan. In order to stop the loss in time, Beiqi Foton adjusted its strategy and issued an announcement on October 9, 2018 to pre-transfer the 67% equity of Borgward Automobile, from a controlling stake to a shareholding.
In March 2019, UCAR, through Changsheng Xingye (Xiamen) Enterprise Management Consulting Co., Ltd., bought a 67% stake in Borgward Automobile for 4.1 billion yuan. Since then, UCAR has also released a new strategy with Borgward Automobile to launch a new retail platform for Borgward Automobile.
However, the model of new auto retail has not allowed Borgward Automobile to achieve a major breakthrough. On the contrary, this model initially triggered the dissatisfaction of Borgward's original dealers, and dealers withdrew from the network frequently, and did not allow Borgward Automobile to gain more consumers' favor.
According to public data, in 2016, 2017 and 2018, Borgward's sales were 30,000, 44,000 and 32,900 units, respectively. After Shenzhou joined Borgward in 2019, Borgward's car sales rose by 54,500 units that year. However, the purchase of Shenzhou car rental has played an important role. 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.
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