German Borgward changed owners again, disappointing Foton concern

German Borgward changed owners again, disappointing Foton concern

December 30, 2018 0 By autotimesnews

Back in 2014, the Chinese concern Foton became the owner of the revived company Borgward, and in 2016 launched the production of new cars. But the company from Germany did not meet expectations and is now fully sold.

The controlling stake of the German company Borgward in the amount of 67% was transferred from the Chinese auto giant Foton to the Chinese company UCAR Group. Moreover, the sale of the company took place on open sources, but the revived brand could not interest the modern automakers. Now Borgward is under the control of a holding company engaged in car rental, related services, as well as finance. The future of the enterprise remains unknown.

Apparently, Foton decided to sell the subsidiary due to the decline in sales, as well as long-term forecasts for reaching the level of profitability. If in 2017 in the Chinese market 44,480 cars of the BX7, BX6 and BX5 were sold, in 2018 only 11,620 cars were sold in 11 months. That is, in less than three years, sales in the largest market fell by almost a quarter.

Recall that Foton began selling Borgward in October and the investment amounted to about 1.7 billion dollars. The amount of today’s transaction is not called.

Nevertheless, the development of new models continued, at least until recently, and earlier we published photos of the new Borgward BX3 crossover.