Recently, the court in Beijing declared the German car brand Borgward bankrupt.

Borgward is the German car brand revived by a truck subsidiary of the China state-owned automaker BAIC Group, Beiqi Foton Motor.

Foton said that insolvent Borgward is also seeking court approval to liquidate its assets.

According to the First Intermediate People’s Court of Beijing, Borgward cannot pay its due debts, and its assets are significantly smaller than its liabilities.

Borgward was once Germany’s third-largest automaker. It was liquidated in 1961.

In 2014, Foton purchased the rights to the Borgward brand to expand into China’s passenger vehicle market. However, the brand failed to achieve meaningful sales and scale.

Borgward racked up more than $564 million in losses from 2016 to 2018.

According to the Shanghai Stock Exchange, Borgward incurred a loss of $605 million (4.7 billion yuan) in 2021.

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