On April 8, Beiqi Foton issued an announcement that due to the financial exhaustion of Beijing Borgward, it was indeed unable to pay off its debts due, and its assets were insufficient to pay off all its debts, Beijing Borgward held an extraordinary shareholders' meeting on April 8, 2022, and resolved to apply for bankruptcy liquidation in accordance with the law.
Borgward, a "legendary brand" that once claimed to be among the German "BBBA", will "return to history" after experiencing a brief round of "climax" under the "boost" of capital. Borgward not only failed to help Beiqi Foton realize its dream of entering the passenger car market, but also greatly dragged down the operating performance of the parent company. Borgward's "departure" has also sounded the alarm for brands that have taken similar practices!
On April 8, Beiqi Foton Automobile Co., Ltd. (stock code: 600166) announced that due to the financial exhaustion of Beijing Borgward, it was indeed unable to pay off its debts as they fell due, and its assets were insufficient to pay off all its debts, Beijing Borgward held an extraordinary shareholders' meeting on April 8, 2022, and resolved to apply for bankruptcy liquidation in accordance with the law.
Taken from beiqi Foton announcement
The "Announcement" shows that Beijing Borgward has suffered serious losses since its establishment, and in order to repay historical debts, the assets will be paid off or mortgaged, coupled with the impact of the failure of the actual controller to lead the war, the capital chain is broken, financing difficulties, and debts have been seriously crisis, and production has not been resumed so far.
Beiqi Foton said that the company will make a large impairment provision for Beijing Borgward's borrowings, current arrears, guarantee matters and the recovery of Beijing Borgward's equity held by the company, which is expected to affect the total profit in 2021 - 4.704 billion yuan, and consider the company's investment income recognized due to the holding of Beijing Borgward's equity, etc., it is expected to affect the total profit in 2021 - 5.326 billion yuan.
At this point, Borgward, a "legendary brand" that once claimed to be among the "BBBA" of the German system, will "return to history" after experiencing a brief "climax" under the "boost" of capital. Borgward not only failed to help Beiqi Foton realize its dream of entering the passenger car market, but also greatly dragged down the operating performance of the parent company.
Looking back at history, Borgward is indeed eligible to become a member of the "BBBA", born in Germany in 1919, Borgward became the third largest automobile manufacturer in Germany in the 1950s, and took the lead in exporting millions of vehicles.
By 1961, however, Borgward had fallen rapidly from its peak, went bankrupt due to a severe debt crisis, and withdrew from the stage of history. Until January 2014, Beiqi Foton, which wanted to enter the passenger car array but broke several times, hit it off with Christian Borgward, the descendant of the founder of the brand who wanted to revive Borgward, and the Borgward brand was reborn.
In September 2015, Holley Shin, CEO of germany's Borgward Automotive Group, returned with the brand, and the first mass-produced model and new business model after the return of Borgward were also unveiled at the Frankfurt Motor Show. In January 2016, Beijing Borgward was approved by the Beijing Miyun District Market Supervision and Administration Bureau, and behind it sat UCAR and Beiqi Foton; In the same year, at the Beijing Auto Show, Borgward BX7 was officially launched.
Relying on the "tall" marketing campaign, the Borgward BX7 achieved a performance that exceeded expectations. Except for the month of launch, the BX7 sold more than 5,000 vehicles in the remaining months of 2016, and achieved cumulative sales of 30,015 units at the end of the year; In 2019, Borgward reached the peak of sales, with annual sales of more than 50,000 vehicles; However, in 2020, Borgward slipped by a surprising margin, with annual sales of only 8703 vehicles, a sharp drop of more than 45,000 units compared with the previous year, a drop of 84.04%, and has since been unable to rebound.
Today, Borgward Automobile is filing for bankruptcy liquidation, which is undoubtedly the focus of attention for the hundreds of thousands of consumers who have paid for the "classic". Qiao Yu (pseudonym) told the China Economic Network reporter, "The unit purchased a lot of Borgward, which used to be maintained at the Borgward 4S store near Dexian Road in Beijing, and the maintenance did not know where to go after that." ”
Taken from the official website of Borgward Automobile
The reporter saw on the homepage of the official website of Borgward Automobile that the "Open Letter to the Majority of Borgward Car Owners" said that Borgward Automotive Technology (Beijing) Co., Ltd. will fully undertake the after-sales service responsibility of Borgward Automobile and continue to provide maintenance services and spare parts supply for car owners in accordance with the original after-sales service policy.
Borgward's "departure" has also sounded the alarm for brands that have taken similar practices! (China Economic Network reporter Guo Yue)