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Borgward will launch the BX7 and BX5 SUVs on the Argentinian market in 2018. http://autoblog.com.ar/2017/09/11/o...se-lanzaran-el-ano-que-viene-en-la-argentina/

Borgward, the historical German automobile that was reborn with Chinese capitals, confirmed that in 2018 it will begin the commercialization of its new cars in Argentina. The models BX7 and BX5-two SUVs with premium positioning-will arrive from China and will be marketed by the importer Stuttgart Motors. Borgward has a historical relationship with Argentina. Between 1954 and 1961, the Borgward Isabella was manufactured in the Cordoba plant of IAME. The importer Stuttgart Motors is composed of the entrepreneurs Juan Tolosa and Alberto García Carmona, with extensive experience in the world of cars and dealers in Argentina. The Borgward BX5 and BX7 are two SUVs of the C-segment (compact) and D (medium). They are produced in China at the Foton automotive plants, which is partner in this new stage in the history of Borgward. The design center and the Borgward headquarters are, however, located in Germany. The prices of the models and the marketing network will be announced at the time of its launching.
 

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Discussion Starter #2 (Edited)
Re: Beijing Automotive news

Borgward will produce vehicles in Argentina again.
http://autoblog.com.ar/2017/09/12/borgward-quiere-volver-a-producir-en-la-argentina/
Autoblog interviewed Tom Anliker, vice president of Marketing, sales and after-sales of Borgward Group AG, based in Stuttgart, Germany, in Frankfurt. In the following dialogue, Anliker anticipate the details of the Borgward to be sold in Argentina and confirms its intentions that the brand will have production again in our country.
-Yesterday Borgward confirmed that, after almost 60 years, will resell its products in Argentina. When will they be launched for sale and what will be the strategy for the first year? -we decided that Argentina is the first Latin American market to receive the products of Borgward in this new stage of the company, taking into account the strong historical burden that the name Borgward has in that country. We will surely continue with the Chilean market. The representative in Argentina will be the Stuttgart Motors company, which will be responsible for establishing a network of dealers, which will be small in a first stage. We didn't put up a sales target for the first year.
-What will be the Borgward models that will be sold in Argentina, what source will they have and how will they be positioned in the market? -We sell the models BX5 and BX7, which are two SUVs that we are already marketing in Europe. They are products designed and developed in Germany. Production is carried out in China, but with German quality standards. That's what allows Borgward products to have a premium quality, but with affordable price. Like Volkswagen.
-However, Volkswagen has local production in Argentina. Upon arrival from China, Borgward's products will be taxed at 35% of customs duties. In what ways do you plan to achieve affordable prices? -In a second stage Borgward will have production in Germany, but in both cases we know that to reach Argentina we must pay important customs duties. That is why we are analyzing produce in Argentina. In fact, Borgward was the only country in Latin America that had local production of Borgward in the previous stage of the company. The conditions to do it again are given and the tax benefits of doing so are also important.
-When could the production of Borgward in Argentina be concretized? -It is still early to set a date. First we have to reach the market, that the public knows our products and to reach a volume of sales that allows to move to the next stage, that would be the production.
-Which engines will have the BX5 and BX7 to be sold in Argentina? -The BX5 has a 2.0 turbo engine with 224 horsepower and a 1.4 turbo with 150 hp. It can be combined with six-speed manual gearbox or six-gear Aisin automatic transmission. The BX7 will be offered only with the 2.0 Turbo and automatic box.
-Would you be encouraged to anticipate the prices you will have in Argentina? -we decided that the announcement will be made by the Stuttgart Motors importer, when the models are launched for sale in the first part of 2018. -In Frankfurt are presenting the Isabella concept. The Borgward Isabella was the most famous model the brand had. Will it come to production? Surely. We still can't confirm it. But no doubt that the name Isabella is the most remembered by the public. In Germany, the names Borgward and Isabella are very sympathetically remembered by the public. And we know that in Argentina it is the same, we live it when we announced the relaunch of the brand last year, in the Autoclassic exhibition. C.C. (Carlos Cristófalo, AAB founder and journalist) interview.
 

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Borgward Auto sold

Beiqi Foton has sold 67% of Beijing Borgward Automobile Co., Ltd., the production arm of Borgward, to Changsheng Xingye (Xiamen) Enterprise Management Consulting Co., Ltd., a financial broker, that is believed to have acquired the stake on behalf of Shenzhou UCAR (Shenzhou Youche Co., Ltd.). Apart from the transfer price of the shares, the buyer will have to repay a loan owed by Beijing Borgward Auto to its former owner Beiqi Foton within three years. Shenzhou UCAR has formally guaranteed repayment of this loan. Bruno Lambert (formerly at Magna Steyr Asia and Iconiq Motors) has been named Global President/CEO.

Shenzhou UCAR is one of China's largest mobility services companies, offering an app-based ride-hailing/chauffeuring service named UCAR as well as car rentals/leases/financing through its HK-listed arm, C.A.R. Inc (Shenzhou Zuche). Hertz Corp. holds a 20% stake in C.A.R. Inc.

http://www.eeo.com.cn/2018/1228/344335.shtml
https://www.autohome.com.cn/news/201812/927860.html

Borgward Automotive (China) Co., Ltd., the management arm, is owned by Borgward Group AG based in Stuttgart, headed by Xiuzhan Zhu. Christian Borgward chairs the supervisory board of Borgward Group AG and is President of Zurich-registered Borgward AG. (corrected)
 

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Re: Borgward Auto sold

Beiqi Foton has sold 67% of Beijing Borgward Automobile Co., Ltd., the production arm of Borgward, to Changsheng Xingye (Xiamen) Enterprise Management Consulting Co., Ltd., a financial broker, that is believed to have acquired the stake on behalf of Shenzhou UCAR (Shenzhou Youche Co., Ltd.). Apart from the transfer price of the shares, the buyer will have to repay a loan owed by Beijing Borgward Auto to its former owner Beiqi Foton within three years. Shenzhou UCAR has formally guaranteed repayment of this loan. Bruno Lambert (formerly at Magna Steyr Asia and Iconiq Motors) has been named Global President/CEO.

Shenzhou UCAR is one of China's largest mobility services company, offering an app-based ride-hailing/chauffeuring service named UCAR as well as car rentals/leases/financing through its HK-listed arm, C.A.R. Inc (Shenzhou Zuche). Hertz Corp. holds a 20% stake in C.A.R. Inc.

http://www.eeo.com.cn/2018/1228/344335.shtml
https://www.autohome.com.cn/news/201812/927860.html

Borgward Automotive (China) Co., Ltd., the management arm, is owned by Borgward Group AG based in Stuttgart, headed by Xiuzhan Zhu. Christian Borgward chairs the supervisory board of Zurich-registered Borgward AG.
Does Foton still own hr management arm?
 

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Borgward AG was founded by Christian Borgward in Lucerne in 2008. Somewhere between 2013 and 2015, it relocated to Zurich.

In December 2010 in Stuttgart, Foton registered a fully-owned subsidiary called Foton Germany Auto-Tech Engineering GmbH. In 2014, FGATE acquired 100% of Borgward AG along with the rights to the Borgward name/brand for about 5 million Euros. On 7-May-2015 FGATE was renamed as Borgward Group AG (see this page).

There are many versions of the history of Borgward AG and Borgward Group AG in the period 2008-2015. Most websites also muddle the two companies, leading to more confusion. But what can be distilled from all this is that Foton still appears to be in control of Borgward Group AG at present.

Of course, now that Shenzhou UCAR has acquired the manufacturing unit, it creates a weird situation where one group owns the plant and another group manages the business (I don't think Shenzhou UCAR wanted to be just a contract manufacturer; it will end up paying more than 8 billion RMB after all). Let's see what steps Shenzhou UCAR takes in this regard: I'm sure UCAR would like its own decisions to be implemented by the board at Borgward Automotive (China) sooner than later.
 

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Some updates

In July 2019, Changsheng Xingye (Xiamen) Enterprise Management Consulting Co., Ltd., the intermediary that had acquired 67% shares of Beijing Borgward Automobile Co., Ltd. (the production company) in December 2018, formally transferred this stake to Shenzhou UCAR (Xiamen) Information Technology Co., Ltd. Now Shenzhou UCAR and Beiqi Foton own 67% and 33% of Beijing Borgward Automobile Co., Ltd.

The German company Borgward Group GmbH (no longer AG), a wholly-owned subsidiary of Foton (see earlier posts), now headed by Baiyin Wang, transferred 100% of Borgward Automotive (China) Co., Ltd. (the China management company) to Beijing Borgward Automobile Co., Ltd. (the production company) in March 2019.

Christian Borgward exited Beijing Borgward Automobile and Borgward Automotive (China) in January and March of 2019 respectively.
 

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Interesting to see the Borgward story in detail. So Ucar bought the Chinese factory and the management company has now become a subsidiary. Do I understand that correctly?
Furthermore, Foton remains the sole owner of the Borgward Group in Germany. But what is really left there? The Bremen factory was cancelled earlier this year, so I asume there is some R&D and maybe the trademarks and naming rights. Will it become just the importer of Ucar-Borgwards?
 

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So Ucar bought the Chinese factory and the management company has now become a subsidiary. Do I understand that correctly?
Yes.
Furthermore, Foton remains the sole owner of the Borgward Group in Germany. But what is really left there? The Bremen factory was cancelled earlier this year, so I assume there is some R&D and maybe the trademarks and naming rights. Will it become just the importer of Ucar-Borgwards?
I think you are more or less right. There hasn't been much news on the European side of the business in 2019. Last year Borgward was supposed to have been launched in Luxembourg. Apart from owning some IP, perhaps the German company will liaise with the independent sales channels in each [European] territory, also handle the Middle East distributorships? Work on software, user experience and connectivity suites? Perhaps some Borgward cars will make it to fleets and ride-sharing companies in Europe, following the business principles of Shenzhou.
 

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I've read some reports about a Starbucks-like chain of coffee restaurants called Luckin Coffee is in trouble after some high ranking managers fabricated revenue numbers. Luckin Coffee is owned by the same holding that owns Ucar and thus Borgward. When Ucar acquired a majority stake in Borgward it also took on the debt of the company and now it looks like there may be problems in satisfying that debt.

More about the story:
https://www.caixinglobal.com/2020-04-10/new-stress-signs-appear-in-luckin-boss-car-empire-101541178.html
https://www.yicaiglobal.com/news/china-largest-car-rental-firm-has-value-halved-by-link-with-fraud-hit-luckin-coffee
 

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Here is the text of the report that blew the lid off the Luckin Coffee scandal (although shenanigans were suspected by analysts and stock watchers earlier too).

For how all this ties in with the Borgward acquisition about which questions are being raised, see Pages 38-46 (§ "Red Flag #2" onward).
 

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Now this:
https://www.scmp.com/business/companies/article/3086953/ucar-exit-chinas-biggest-car-rental-group-after-luckin-coffee
https://www.d1ev.com/news/qiye/117433

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It also transpires that Shenzhou UCAR had effectively paid much less for Borgward's 67% than announced publicly because of some compensation received from Foton for nontransferable land and real estate (due to some regulations), as well as adjustments in forward debt, collateral, and some credit received from Foton.
 

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Yes, it seems to be a rather messy situation. I had already read this rather critical analysis of BAIC's purchase of CAR shares:

https://www.autonews.com/china-commentary/why-beijing-bailing-out-car-inc

It looks a lot like BAIC is bailing out mr. Charles Lu Zhengyao from his questionable business practices. Or maybe it's just trying all that it can get for the defaulted payments on Borgward before mr Zhengyao's empire collapses all together.
 
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