At the Geneva Motor Show in March 2015, the German car brand BORGWARD held a massive brand “Resurrection” event and launched its model BX7, and then the next two years, BORGWARD had successively launched BX5, BX6 and other products, according to relevant statistics, in 2016, BORGWARD’s sales reached 30015 vehicles, and in 2017, BORGWARD’s sales reached 44,380 units, for a “newborn” brand, such achievements were indeed remarkable.
However, as Chinese consumers’ attention to the BORGWARD brand has deepened and the Chinese auto market has suddenly fallen back, BORGWARD’s situation has turned sharply in 2018. BORGWARD’s annual sales volume was only 32,942 units in 2018, down 25.7% year-on-year, and in the fourth quarter of 2018, it plummeted 40%. Among the three models, the best-selling BORGWARD BX5 has dropped to about 2,000/month; the monthly sales of the BX7 have already dropped to less than 1,000; the BX6 has never achieved a breakthrough in sales.
On June 26, 2019, BORGWARD holded a new round of factory exploration activities. During the event, BORGWARD’s “smart factory” in the Miyun District of Beijing was once again open to the public. In addition, after the factory exploration activities, BORGWARD also arranged a test drive for its products.
Since the acquisition by UCAR, BORGWARD has not been exposed for a long time, this tiem it starts large-scale factory tour and test drive, or a prelude to return to the market “track”.
When it comes to BORGWARD, you have to mention the UCAR in China. In December 2018, BAIC-Foton transferred 67% stake of BORGWARD to Changshengxingye for a price of 3.973 billion yuan. Subsequently, in March 2019, Shenzhou UCAR acquired 67% stake of BORGWARD held by Changshengxingye for RMB 4.1 billion yuan and became the controlling party of BORGWARD. After that, the Shenzhou UCAR has made drastic reforms to BORGWARD’s previous marketing team and dealer team.
Before the control by UCAR , BORGWARD experienced a period of oscillation, and terminal sales have been declining. With the intervention of UCAR, BORGWARD’s terminal sales have increased. According to the statistics of the CPCA, the sales volume of BORGWARD terminal reached 25,327 units in the first five months of this year, an increase of 104.2%. We will keep an eye on the future development of BORGWARD.