Why Did Borgward Cease Production?
3 Answers
Rumors about Borgward's production halt have persisted, yet the company has remained tight-lipped on the matter, even maintaining on official public channels that operations are normal. However, the Beijing Enterprise and Institution Environmental Information Disclosure Platform indeed contains two "Beijing Borgward Automotive Plant Production Suspension Notices," stating: "Due to the impact of the pandemic, internal orders are insufficient, and parts cannot be delivered as some Hubei-based suppliers have not resumed production, making it impossible to restore normal production." Relevant information about Borgward: 1. Brand Origin: Founded by Carl Borgward in 1919 in Bremen, Germany, Borgward became Germany's third-largest automobile manufacturer, accounting for over 60% of the country's export share at the time. 2. Models: Borgward's product lineup includes traditional fuel-powered models such as the BX7, BX7-TS, BX5, BX6, as well as the new energy model BXi7.
As an ordinary car owner, many of my friends who bought Borgward vehicles have encountered troubles. The cars looked stylish and had luxurious interiors when first driven, but over time, they developed constant minor issues, such as flickering headlights, frozen instrument panels, and noisy brakes. Repairs were expensive and time-consuming, causing frustration. Consumers in the market saw through the brand's problems, leading to a sharp decline in reputation and stagnant sales. Inventory piled up, and the manufacturer couldn't make money—instead, it lost money. The Chinese auto market is fiercely competitive, like a battlefield. Haval and Great Wall sell well at low prices, while Borgward's positioning was neither here nor there, boasting German heritage but actually featuring domestic craftsmanship that wasn't up to par. Consumers mocked it for false advertising and deception. In the end, Borgward couldn't hold on and had to shut down, ceasing production altogether.
It's no surprise that economic factors led to Borgward's production halt. During its brand revival phase, massive investments were poured into factory construction, hiring, and advertising. The brand frequently appeared at auto shows, but sales figures were dismal—annual sales fell far below expectations while costs kept soaring. R&D, production, and marketing were all money-burning endeavors with no profit in sight, leaving cash flow as tight as a stretched wire. Parent company Beiqi Foton’s overall performance was poor, and with limited resources, it had to prioritize profitable ventures like its shift to new energy. Borgward became a bottomless pit, dragging down earnings with persistent losses. Amid the pandemic-induced economic downturn, consumers tightened their wallets, the auto market shrank, and survival became impossible. The decision-makers opted to cut losses by shutting down production—a pragmatic move.
