Borgward motor has no property to execute, all stores suspended sales

2022-04-18 0 By

Borgward Auto has no assets to execute in a case involving China First Communications (Beijing) Culture Co., LTD., according to the tianyan App.Beijing municipal intermediate people’s court of the third executive orders, according to the first project (Beijing) culture co., LTD., apply to the court for compulsory execution treasure car about 2.07 million yuan of money and interest, the court account query the person subjected to execution, the ownership of the house, vehicle registration situation and industrial and commercial registration, no property available to perform the person subjected to execution.At present, the executor of the application has agreed to terminate the execution procedure.”The shops are no longer selling cars, and the after-sale service is not possible. Shops all over the country no longer sell cars.The company went bankrupt.”Beijing area Bao Wo car sales store a manager told reporters today.Information also shows that since this year, a number of Borgward owners complained that there were no parts for vehicle maintenance and lifetime warranty could not be fulfilled, and Borgward manufacturers have been unable to stabilize shipments.A staff member of Borgward’s customer service center told China Business News today that the company has not received bankruptcy notice, but all the car stores have suspended sales and have been closed.He added that The sales and after-sales of Borgward cars are separate, and after-sales problems go to Borgward’s auto repair outlets, which are still in operation.As of press time, the reporter in the national enterprise bankruptcy reorganization case information network did not check the bankruptcy announcement related to Bwoor automobile.It emerged last June that Borgward was about to enter bankruptcy proceedings.According to borgward’s official website, there are six models for sale at present, namely BX7, BX7 TS, BX5, BX3, BXi7 and BX6.However, when reporters contacted borgward’s sales manager in Beijing in June last year, they learned that only three models were sold at that time, namely BX7, BX5 and BX3.In addition, the reporter learned that since last July, Borgward motor has been in arrears of wages.In December, Foton announced that assets related to Beijing Bward Auto had been seized by the Beijing No. 3 Intermediate People’s Court, involving a book value of 2.209 billion yuan.Foton also said in a statement in September last year that Borgward motor’s business situation has deteriorated and there are large risks in production and operation. From its operating status and specific financial data, it does not have debt solvency.Before Shenzhou Youche entered Borgward Automobile, Borgward automobile had been wholly owned by Beiqi Foton.From 2016 when Borgward was put into production to 2018 when it was transferred, the net profit of Beiqi Foton in three years was 567 million yuan, 112 million yuan and -3.575 billion yuan respectively, and the net profit of Borgward was -484 million yuan, -985 million yuan and -2.545 billion yuan.That is to say, The development of Baugh automobile is unfavorable, dragging down the performance of Beiqi Foton.In order to stop losses in a timely manner, Beiqi Foton adjusted its strategy, on October 9, 2018, the announcement of the pre-transfer of 67% of the borgward automobile holdings, from holding to equity.In March 2019, China Auto, through Changsheng Xingye (Xiamen) Enterprise Management Consulting Co., LTD., bought a 67% stake in Borgwald Auto for 4.1 billion yuan.Since then, China Youcha also released a new strategy with Borgward Auto, launching the New retail platform of China Borgward Auto. Through industrial chain transformation and platform empowerment, it launched “thousands of cities and thousands of stores”, claiming to fully realize the separation of production and sales, channel remodeling, reconstruction of automobile consumption, and redefine the new retail of automobiles.In addition, Shenzhou Auto also launched in-depth test drive, zero down payment car purchase, no reason to return the car within 90 days and other business models for Borgwards through the nationwide network of Shenzhou Car Rental.However, the new retail model of the car did not let Borgward car to achieve a greater breakthrough.On the contrary, this model initially caused dissatisfaction among Borgward’s existing dealers, who frequently withdrew from the network.In addition, the new retail model has not made Borgward more popular with consumers.According to public data, Borgward sold 30,000 cars in 2016, 44,000 in 2017 and 32,900 in 2018.After Shenzhou took control of Borgward in 2019, the sales volume of Borgward increased by 54,500 units.However, the purchase of shenzhou car rental played an important role.With the decline of The performance of China Car Rental, Borgward car sales in 2020 also declined significantly, the cumulative sales of only 8,740 new cars.With the explosion of luckin coffee, shenzhou department was greatly affected and could no longer provide blood transfusion for Borgward Automobile.From the current information, borgward no one to take over, may go bankrupt.