Borgward is experiencing serious issues following its reintroduction to the European market.
The historic German model was revived again in 2015 with the intention of returning to Europe in 2018. While it did certainly make it to European shores, issues have been removed from supreme for the corporate.
According to a report from German publication Automobilwoche, Borgward has been going through numerous points since China’s Beiqu Foton Motor, a subsidiary of BAIC, offered its 67 per cent stake within the automaker to Chinese ride-hailing and car-rental firm Ucar in 2019.
It is claimed that the ride-hailing firm doesn’t have the sort of progressive retail mannequin that Borgward must drum up gross sales. In addition, Ucar billionaire shareholder Charles Zhengyao Lu is being investigated for an accountancy fraud.
This 12 months, Borgward has offered simply 5,000 autos and presently operates only a single retail location in Europe, situated in Luxembourg. What’s extra, the model doesn’t seem like sustaining its headquarters in Stuttgart. At the time of the model being revived 5 years in the past, Foton Motor was aiming for 800,000 annual gross sales by 2020.
Under the possession of Ucar, Borgward’s gross sales briefly improved as its autos had been used for Ucar’s numerous companies. However, this leap in gross sales proved to be short-lived.
Speaking to Automobilwoche, Jochen Sibert from JSC Automotive, a consultancy specializing in China, expressed concern about Ucar’s plans for the model.
“I don’t understand at all why a supplier like Ucar has to build the cars itself,” he stated. He additionally criticized the choice of promoting autos by small shops as an alternative of enormous dealerships. “Especially with an unknown brand, it is important to be able to look at and try out models.”
Salesman Andre Lacerda from the only dealership in Luxembourg instructed Automobilwoche that “we are very satisfied with the business,” claiming the supplier has offered over 100 new Borgward SUVs since summer time 2018. He additionally prompt used fashions are promoting nicely and added there aren’t any indicators the model is considering ending its European operations.