Bankrupt for the second time? Borgward to bid farewell, again

It looks like the end is near for the revived German-Chinese marque Borgward, as reports coming out of China are saying that company will be undergoing bankruptcy proceedings.

An unnamed source told Pandaily, “Borgward is inevitably doomed. It never made it, no buyer is interested in taking it over, so bankruptcy is by far the most preferable option.” A final decision will likely be made in July.

While initial sales of the Borgward BX7 seemed promising, with 6,000 units sold at its peak, sales eventually tapered off soon afterwards. Despite announcing to sell 800,000 cars globally by 2020, the company barely sold 5,000 units in the first half of 2020. 

Borgward was founded in Germany back in 1919, before going bankrupt in 1961. Foton Motor Group then acquired the marque in 2014 for 5 million euros and begun manufacturing Borgward-branded models in China.

Closer to home, the Borgward brand was represented by the Borgward BX5 – a C-segment SUV that competes against the likes of the Proton X70, Honda CR-V, Mazda CX-5, and Volkswagen Tiguan.

Also Read: Ratings Comparison: Proton X70 vs Honda CR-V vs Mazda CX-5 - Overall results

Despite being priced lower than its competition, sales of the Borgward BX5 barely took off in Malaysia.

Furthermore, seeing that the marque could go under in the near future, it could spell the end for Borgward’s presence in Malaysia as well. After all, when was the last time you saw a Borgward?

Also Read: Top Rank: What are the worst-selling cars in Malaysia?