Borgward Group

Last updated

Borgward Group AG
Company typePrivate
Industry Automotive
Founded2010
Defunct2022
Fate bankruptcy
Headquartersformer Stuttgart, Germany Headquarters and China Production [1]
Area served
Germany
Mainland China
Malaysia
Nepal
Key people
Christian Borgward (Chairman), Ulrich Walker (CEO), Jason Yang
Products Automobiles
Total equity Christian Borgward
Karlheinz L. Knöss
23 % Foton Motor Insolvent
67 % UCAR Group
Website www.borgward.com
The first Borgward-Flagship-Store in Europe opened in June 2018 in Stuttgart Borgward Store Stuttgart - June 2018.jpg
The first Borgward-Flagship-Store in Europe opened in June 2018 in Stuttgart

Borgward Group AG was a Chinese-German automobile brand established in 2010 with headquarters in Stuttgart, Germany. The company carried the name and logo of the former German brand Borgward. Design and engineering was located in Germany, but the cars were produced in China by Foton Motor.

Contents

Borgward started its business with a range of conventional SUVs, with sales reaching approx. 75,000 units by January 2018. The firm had branches in China, Russia, India, Brazil and Mexico. Borgward presented the Isabella concept at the Frankfurt Motor Show 2017, its vision of a full-electric 4-door coupé. [2] Full electric models, the BXi7 and GT SUV BX6, were launched on May 9, 2018 in Beijing.

History

Christian Borgward revived the Borgward trademark with the help of the Chinese truck manufacturer Foton, who sold a stake in the company to the Chinese car rental group Ucar in 2019. [3] Borgward Group AG is responsible for the development, production, sales and marketing of Borgward cars. [4]

Genesis

In April 2005, Christian Borgward (grandson of Carl F. W. Borgward) [5] as president and Karlheinz L. Knöss as CEO and vice president of the supervisory board started the revival of Borgward. They started the development of the new Borgward automobiles with car designers Roland Sternmann and Benjamin Nawka, set up the organisation and engineer team and developed several car concepts. On May 21, 2008, Borgward and Knöss founded Borgward Group AG in Lucerne, Switzerland, [6] later relocating to Stuttgart, Germany.

Foton earned the rights to maintain the Borgward name in 2014. [7]

Troubles

In 2018, Foton Motors announced plans to sell their stake of Borgward at 67%. [8]

According to the German newspaper Automobilwoche, the company struggled to earn better sales after Foton sold its 67% stake to UCar [9] in 2019 for $614 million. [1] The newspaper said that Borgward sold around 5,000 vehicles in the first half of 2020. [1] According to André Lacerda, a Borgward salesman in Luxembourg, the company did not have plans to halt reintroduction of Borgward vehicles throughout Europe. [9]

Charles Zhengyao Lu, chairman of Luckin Coffee, was also involved in an accounting scandal, which played a role in the sudden sales decline. [7]

Borgward had reportedly vacated its headquarters in Stuttgart as of 2020, with calls to the office going unanswered. [7] By 2021, most vehicle production had ceased. [10] Borgward's Malaysian operations were discontinued due to lack of shipment of vehicles from China and mediocre sales. [11] Ucar denied news that the company had gone bankrupt, but acknowledged difficulties in finding investors while it entered administration in June 2021. [12] However, a Beijing court ordered its assets seized for failing to pay debts in December 2021. [13]

Borgward filed for bankruptcy in Beijing on April 8, 2022. [14] [10] On December 5, 2022, the First Intermediate People’s Court of Beijing approved the company's bankruptcy declaration. [15]

Jochen Sibert from JSC Automotive criticized the company's plan to use small stores instead of large dealerships to market the vehicles in 2020. [16]

Overseas presence

At the 14th International Motor Show in Dubai on November 14, 2017, the Borgward BX5 and 7 were introduced to GCC countries. [17]

The brand was distributed in Malaysia by Go Bremen Motors. [18] An agreement signed between GBM and Borgward would have brought manufacturing of vehicles and exports to some parts of ASEAN. [18] However, plans to launch the brand in Malaysia in 2019 were stalled. [19] On July 7, 2018, the Luxembourgish company AUTODIS ESCH/MERSCH was appointed as the first European retailer/distributor for Borgward. [20]

In April 2020, it was announced that DSM Global Company is in partnership with GBM to handle car exports to Nepal with the former handling Nepali operations. [21] [22]

Borgward announced that the company will retail its vehicles to Britain and Ireland in 2019 [23] with models distributed by International Motors. [24]

Production

Foton is currently Borgward's sole investor, but both companies have repeatedly announced that the ownership structure may change over time. [25]

Borgward announced plans for a new car at the 2015 Geneva Motor Show after a 54-year hiatus. [26] [27] The new company is backed up financially by Chinese truck manufacturer Foton. [28]

The Borgward BX7 SUV was introduced at the IAA, Frankfurt in September 2015. [29] and sales in China started in July 2016. [30]

Models

SUVs

Concept cars

Sales

According to the China Association of Automobile Manufacturers (CAAMP), BG has reportedly sold around 30,000 BX7s in 2017. [7] Borgward sales in China in 2019 reached a record 45,321 units for the brand. (data from the CarSalesBase resource), but this is explained by the fact that UCAR Group purchased Borgwards to upgrade its own parks. In 2020, at the height of the COVID-19 pandemic, the demand for Borgwards in China fell to 8703 units, in 2021 to 3530 units. [31]

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References

  1. 1 2 3 "Obstacles hinder revival of historic German marque Borgward". Autocar. Archived from the original on 16 September 2021. Retrieved 27 September 2021.
  2. ↑ "Borgward Isabella concept is a radical preview of the company's electric future Archived 27 February 2018 at the Wayback Machine ", Auto Week, 13 September 2017.
  3. ↑ "Borgward Flounders Following Far from Ideal European Revival". 25 August 2020.
  4. ↑ "Borgward". Archived from the original on 1 August 2015. Retrieved 15 April 2010.
  5. ↑ Peter Homola, "Family considers revival of Borgward brand Archived 2018-02-27 at the Wayback Machine ", Wards Auto, 19 April 2005.
  6. ↑ "Handelsregister des Kantons Luzern". Hralu.ch. 24 June 2008. Retrieved 12 June 2010.[ dead link ]
  7. 1 2 3 4 "Iconic German brand Borgward's revival stumbles". 21 August 2020. Archived from the original on 7 October 2021. Retrieved 27 September 2021.
  8. ↑ Tudose, Sergiu (12 October 2018). "Recently Revived Borgward Needs New Investors Amidst Declining Sales". Carscoops. Retrieved 19 May 2023.
  9. 1 2 "Borgward sales falls considerably short of 800k target, faces difficulties with its European reintroduction - paultan.org". 25 August 2020. Archived from the original on 7 October 2021. Retrieved 27 September 2021.
  10. 1 2 "Borgward car brand has filed for bankruptcy". rusbankrot.ru. Archived from the original on 30 December 2022. Retrieved 30 December 2022.
  11. ↑ "Borgward Auto is Slowly Disappearing from Malaysia". 19 June 2021. Archived from the original on 12 July 2022. Retrieved 25 May 2022.
  12. ↑ "Ucar-Controlled Auto Firm Borgward Denies Bankruptcy Rumors". Archived from the original on 14 September 2022. Retrieved 14 September 2022.
  13. ↑ "Unable to Repay Debts, Borgward Assets Worth USD345 Million Are Seized by Chinese Court". Archived from the original on 24 October 2022. Retrieved 24 October 2022.
  14. ↑ "Beijing Borgward files for bankruptcy". Gasgoo. Archived from the original on 29 December 2022. Retrieved 11 April 2022.
  15. ↑ "Borgward Is Dead 7 Years After Its Re-Launch As It Fails To Penetrate China's Market | Carscoops". Archived from the original on 6 December 2022. Retrieved 19 May 2023.
  16. ↑ "Borgward Flounders Following Far From Ideal European Revival | Carscoops" . Retrieved 19 May 2023.
  17. ↑ "Middle East versions of Borgward's BX7 &BX5 SUVs". Archived from the original on 27 September 2021. Retrieved 27 September 2021.
  18. 1 2 "Borgward inks agreement with Go Bremen Motors - Malaysian market debut of BX7 and BX5 in Q3, 2018 - paultan.org". 2 May 2018. Archived from the original on 9 January 2021. Retrieved 7 January 2021.
  19. ↑ "2019 year in review and what's to come in 2020 - slow year for Kia, Hyundai; Jeep to return; Renault shines - paultan.org". 30 December 2019. Archived from the original on 8 January 2021. Retrieved 7 January 2021.
  20. ↑ "AUTODIS ESCH/MERSCH to become Borgward distributor for Luxembourg". Archived from the original on 27 September 2021. Retrieved 27 September 2021.
  21. ↑ "Borgward Announces the BX5 Compact SUV for Nepal, the First Shipment Arriving Soon!". 17 April 2020. Archived from the original on 9 January 2021. Retrieved 7 January 2021.
  22. ↑ "Flag off Ceremony for Borgward Export to Nepal - Borgward Malaysia". Archived from the original on 8 January 2021. Retrieved 7 January 2021.
  23. ↑ "Borgward SUVs to be launched in UK, Ireland in 2019 - paultan.org". 27 November 2018. Archived from the original on 9 January 2021. Retrieved 7 January 2021.
  24. ↑ "Borgward SUVs ready for 2019 UK launch". Auto Express. Archived from the original on 27 September 2021. Retrieved 27 September 2021.
  25. ↑ Harry Pretzlaff, „Vier große Anteilseigner sind besser als einer Archived 27 February 2018 at the Wayback Machine “, Stuttgarter Zeitung, 17 December 2017.
  26. ↑ Kalogianni, Alexander (9 February 2015). "Borgward heralds its return after 50 years with Geneva Auto Show announcement". Digital Trends. Archived from the original on 13 February 2015. Retrieved 14 February 2015.
  27. ↑ "German maker Borgward is back!". Topgear. Archived from the original on 19 February 2015. Retrieved 19 February 2015.
  28. ↑ Coyle, John (28 February 2015). "China's Foton Set To Launch Revival Of Borgward At The Geneva Motor Show". Motor Authority. Archived from the original on 2 April 2015. Retrieved 31 March 2015.
  29. ↑ "Borgward BX7 SUV revealed in Frankfurt". Archived from the original on 23 April 2016. Retrieved 18 September 2015.
  30. ↑ Bruce, Chris (16 September 2015). "Borgward BX7 and BX7 TS mark return after 50-year break". Autoblog. Archived from the original on 20 May 2016. Retrieved 19 July 2016.
  31. ↑ "Возрождение не удалось: компанию Borgward опять банкротят - КОЛЕСА.ру – автомобильный журнал". Archived from the original on 11 April 2022. Retrieved 11 April 2022.
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