[dmitra]

Borgward BXi5 and BXi6 electrics approved:

http://data.miit.gov.cn/viewCar?carId=163163#
http://data.miit.gov.cn/viewCar?carId=162396#

 

[dmitra]

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)

 

[dmitra]

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.

 

[dmitra]

http://www.xinhuanet.com/english/2019-01/08/c_137729017.htm

http://europe.chinadaily.com.cn/a/201901/07/WS5c32bb44a31068606745f3a0.html

 

[dmitra]

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.

 

[dmitra]

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.

 

[dmitra]

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).

 

[dmitra]

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

______________________

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.

 

[dmitra]

Twist in the tale: Not BAIC, but SAIC ends up buying CAR Inc., through a Hong Kong subsidiary.

http://autonews.gasgoo.com/m/70017305.html
https://www.caixinglobal.com/2020-07-03/luckin-coffee-founder-to-sell-stake-in-car-rental-unit-to-saic-101574904.html

 

[dmitra]

It's BAIC again! SAIC has decided not to proceed:
https://www.d1ev.com/news/qiye/120672
https://www.d1ev.com/news/qiye/120660

However, the company is being investigated now by CSRC:
https://www.sohu.com/a/408712162_561670