Borgward has confirmed its intention of opening a factory in the German city of Bremen.

Although it could have proven cheaper to build the facility elsewhere, Borgward has opted for its historical hometown and plans to start production on the plant in 2017. Vehicle production will then commence in 2018.

During the first phase of construction, an assembly hall will be built, capable of creating 10,000 vehicles annually and adding between 50 to 100 employees to Borgward’s workforce.

Initially, the German facility will handle production of an all-electric version of the BX7 luxury SUV. This model is already being built in plug-in hybrid guise in China.

Further down the road, the plant will build the smaller BX5 SUV, also tipped to be offered as both a plug-in hybrid and electric model.

The company itself was famously revived in 2015 with the help of Chinese investors. It originally produced vehicles from the 1920s through to 1961.

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