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Borgward Group

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.

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.[3]

Foton sold their interest to Ucar in 2019 but following poor sales in 2020 and 2021, the company filed bankruptcy in China in April 2022 and was declared bankrupt in December 2022.[4]

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.[5] Borgward Group AG is responsible for the development, production, sales and marketing of Borgward cars.[6]

Genesis

In April 2005, Christian Borgward (grandson of Carl F. W. Borgward)[7] 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 21 May 2008, Borgward and Knöss founded Borgward Group AG in Lucerne, Switzerland,[8] later relocating to Stuttgart, Germany.

Foton earned the rights to maintain the Borgward name in 2014.[9]

Borgward announced plans for a new car at the 2015 Geneva Motor Show after a 54-year hiatus.[10][11] The new company was backed up financially by Chinese truck manufacturer Foton.[12]

Troubles

In 2018, Foton Motors announced plans to sell their stake of Borgward at 67%.[13]

According to the German newspaper Automobilwoche, the company struggled to earn better sales after Foton sold its 67% stake to UCar[14] in 2019 for $614 million.[2] The newspaper said that Borgward sold around 5,000 vehicles in the first half of 2020.[2] According to André Lacerda, a Borgward salesman in Luxembourg, the company did not have plans to halt reintroduction of Borgward vehicles throughout Europe.[14]

Charles Zhengyao Lu, chairman of Luckin Coffee, was also involved in an accounting scandal, which played a role in the sudden sales decline.[9]

Borgward had reportedly vacated its headquarters in Stuttgart as of 2020, with calls to the office going unanswered.[9] By 2021, most vehicle production had ceased.[15] Borgward's Malaysian operations were discontinued due to lack of shipment of vehicles from China and mediocre sales.[16] Ucar denied news that the company had gone bankrupt, but acknowledged difficulties in finding investors while it entered administration in June 2021.[17] However, a Beijing court ordered its assets seized for failing to pay debts in December 2021.[18]

Borgward filed for bankruptcy in Beijing on 8 April 2022.[19][15] On 5 December 2022, the First Intermediate People’s Court of Beijing approved the company's bankruptcy declaration.[20]

Jochen Sibert from JSC Automotive criticized the company's plan to use small stores instead of large dealerships to market the vehicles in 2020.[21]

Leadership

  • Karlheinz L. Knöss (2009–2015)
  • Ulrich Walker (2015–2018)[22]
  • Philip Koehn (2018)[23]
  • Xiuzhan Zhu (2018–2022)[24]

Overseas presence

At the 14th International Motor Show in Dubai on 14 November 2017, the Borgward BX5 and 7 were introduced to GCC countries.[25]

The brand was distributed in Malaysia by Go Bremen Motors.[26] An agreement signed between GBM and Borgward would have brought manufacturing of vehicles and exports to some parts of ASEAN.[26] However, plans to launch the brand in Malaysia in 2019 were stalled.[27] On 7 July 2018, the Luxembourgish company AUTODIS ESCH/MERSCH was appointed as the first European retailer/distributor for Borgward.[28]

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.[29][30]

Borgward had plans to retail its vehicles to Britain and Ireland in 2019[31] with models distributed by International Motors,[32] but that did not proceed.[33]

Models

The Borgward BX7 SUV was introduced at the IAA, Frankfurt in September 2015.[34] Sales in China started in July 2016.[35]

SUVs

Concept cars

  • Borgward Isabella Concept (2017)
  • Borgward BXi7 (Electric Vehicle, SUV)

Sales

According to the China Association of Automobile Manufacturers (CAAMP), BG has reportedly sold around 30,000 BX7s in 2017.[9] 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.[36]

External links

References

  1. Xiuzhan Zhu becomes new CEO of Borgward Group AG 30 November 2018^
  2. Obstacles hinder revival of historic German marque Borgward Autocar, retrieved 27 September 2021^
  3. "Borgward Isabella concept is a radical preview of the company's electric future ", Auto Week, 13 September 2017.^
  4. Borgward declared bankrupt after failed rescue efforts Autocar, 2 December 2022, retrieved 9 April 2026^
  5. Brad Anderson. Borgward Flounders Following Far from Ideal European Revival Carscoops, 25 August 2020^
  6. Borgward retrieved 2010-04-15^
  7. Peter Homola, "Family considers revival of Borgward brand ", Wards Auto, 19 April 2005.^
  8. Handelsregister des Kantons Luzern Hralu.ch, 2008-06-24, retrieved 2010-06-12^
  9. Iconic German brand Borgward's revival stumbles 21 August 2020, retrieved 27 September 2021^
  10. Alexander Kalogianni. Borgward heralds its return after 50 years with Geneva Auto Show announcement Digital Trends, 9 February 2015, retrieved 14 February 2015^
  11. German maker Borgward is back! Topgear, retrieved 19 February 2015^
  12. John Coyle. China's Foton Set To Launch Revival Of Borgward At The Geneva Motor Show Motor Authority, 28 February 2015, retrieved 31 March 2015^
  13. Sergiu Tudose. Recently Revived Borgward Needs New Investors Amidst Declining Sales Carscoops, 12 October 2018, retrieved 19 May 2023^
  14. Borgward sales falls considerably short of 800k target, faces difficulties with its European reintroduction - paultan.org August 25, 2020, retrieved 27 September 2021^
  15. Borgward car brand has filed for bankruptcy rusbankrot.ru, retrieved 2022-12-30^
  16. Borgward Auto is Slowly Disappearing from Malaysia 19 June 2021, retrieved 25 May 2022^
  17. Ucar-Controlled Auto Firm Borgward Denies Bankruptcy Rumors retrieved 14 September 2022^
  18. Unable to Repay Debts, Borgward Assets Worth USD345 Million Are Seized by Chinese Court retrieved 24 October 2022^
  19. Beijing Borgward files for bankruptcy Gasgoo, retrieved 2022-04-11^
  20. Borgward Is Dead 7 Years After Its Re-Launch As It Fails To Penetrate China's Market | Carscoops retrieved 19 May 2023^
  21. Brad Anderson. Borgward Flounders Following Far From Ideal European Revival | Carscoops Carscoops, 25 August 2020, retrieved 19 May 2023^
  22. BORGWARD Group AG Appoints Ulrich Walker as Chairman of the Board of Management and CEO^
  23. Executive Changes Announced at Borgward Group AG aftermarketNews, 29 June 2018^
  24. Borgward promotes former purchasing boss to CEO^
  25. Middle East versions of Borgward's BX7 &BX5 SUVs retrieved 27 September 2021^
  26. Borgward inks agreement with Go Bremen Motors - Malaysian market debut of BX7 and BX5 in Q3, 2018 - paultan.org May 2, 2018, retrieved 7 January 2021^
  27. 2019 year in review and what's to come in 2020 - slow year for Kia, Hyundai; Jeep to return; Renault shines - paultan.org December 30, 2019, retrieved 7 January 2021^
  28. AUTODIS ESCH/MERSCH to become Borgward distributor for Luxembourg retrieved 27 September 2021^
  29. Borgward Announces the BX5 Compact SUV for Nepal, the First Shipment Arriving Soon! 17 April 2020, retrieved 7 January 2021^
  30. Flag off Ceremony for Borgward Export to Nepal - Borgward Malaysia retrieved 7 January 2021^
  31. Borgward SUVs to be launched in UK, Ireland in 2019 - paultan.org November 27, 2018, retrieved 7 January 2021^
  32. Borgward SUVs ready for 2019 UK launch Auto Express, retrieved 27 September 2021^
  33. Obstacles hinder revival of historic German marque Borgward Autocar, 25 August 2020, retrieved 9 April 2026^
  34. Borgward BX7 SUV revealed in Frankfurt retrieved 2015-09-18^
  35. Chris Bruce. Borgward BX7 and BX7 TS mark return after 50-year break Autoblog, 16 September 2015, retrieved 19 July 2016^
  36. Возрождение не удалось: компанию Borgward опять банкротят - КОЛЕСА.ру – автомобильный журнал retrieved 11 April 2022^