Recently Revived Borgward Needs New Investors Amidst Declining Sales

In a move that’s meant to attract new investors in Borgward, Chinese company Beiqi Foton Motor is looking to sell a 67% stake in the German brand, as financial loses continue to escalate.

Since its revival, Borgward has launched two gasoline-powered crossovers in the BX5 and BX7, the latter also featuring a battery-electric variant that went on sale in China. Assembly for the vehicles takes place at Foton’s plant in Beijing.

Borgward went on to enter the German market back in July with the BX7, the very first vehicle sold by the company on its home soil since 1961.

Yet, things haven’t been going exactly as planned from a financial standpoint. Borgward’s sales have declined 23% year-to-year, reaching 18,996 vehicles, reports Automotive News Europe. Because of this drop, the automaker sustained a loss of more than 1.6 billion yuan ($231.5 million) as of August this year, according to Foton. At this moment in time, sales reportedly show no signs of improving.

Aside from the electrified BXi7, Borgward most recent unveiling is the BX6 crossover, which is a Coupe SUV. Their most stylish creation however remains the Isabella Concept from last year’s Frankfurt Motor Show – a four-door, four seat coupe.

Once Germany’s third-largest automaker, Borgward was liquidated in 1961 before Foton, a truck subsidiary of Chinese automaker BAIC Group, acquired the rights to the brand back in 2014.

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  • Dr Bjorn K. Von Strangefingger

    Wow, invest in a failing company… what a deal. Might as well throw $$$$ at Tesla while you’re at it.

  • designer_dick

    Foton should talk to Groupe PSA about them potentially purchasing the 67% share in Borgward. They seem to specialise in turning round financially troubled car manufacturers – first clawing their own way back from a $5bn loss in 2012 to a profit margin that’s the envy of their mainstream peers by 2017, and then cutting the dead wood at Opel/Vauxhall, returning those new subsidiaries to profit less than a year after taking ownership, and for the first time in almost 20 years. So far, the only conundrum they haven’t been able to crack is DS, but they’ve only really been working on that as a standalone brand for 3 years.

    • Well why would PSA want Borgward? They can made cars of their class and sorry to say, Borgward is nothing but a Chinese product that needs worldwide branding to hide their Chinese roots.

      • designer_dick

        Why would they want a 67% share of Borgward? For the same reason they wanted the perennially unprofitable Opel/Vauxhall – increased volume, which equals increased economies of scale.

        • Steel Punk

          lol no comparison. Borgward is a tiny startup. Opel was one of the biggest brands in Europe when it was sold.

  • Karl

    This thing has failure written all over it with its blend in the crowd design.

  • DJ

    sometimes dead is better.

  • erly5

    Who’d have seen this coming???

  • TRYING TO SELL AN SUV THAT LOOKS LIKE EVERY OTHER SUV WHEN THEY HAD THE ISABELLA CONCEPT MAKES NO SENSE TO ME.

  • Well isn’t it surprising? Chinese car masquerade as once great German brand, I’m quite surprised they actually sell the car in Europe, since their European site is awful.

  • Cobrajet

    It’s a fake brand and it doesn’t look German.

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