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Foton to inject 4.4 billion yuan in Borgward
Automotive News China | 2018/6/29

Beiqi Foton Motor Co. plans to invest 4.4 billion yuan ($667 million) in Borgward Group, the German carmaker it revived four years ago.

The investment, intended to strengthen Borgward¡¯s businesses, was approved by its board of directors, Foton said Wednesday.

With the investment, Borgward¡¯s registered capital will increase to 7.4 billion yuan from 3 billion yuan now.

Borgward, once Germany's third-largest automaker, was liquidated in 1961. Foton, a truck subsidiary of state-owned Chinese automaker BAIC Group Corp., acquired the rights to the Borgward brand in 2014. 

In the past two years, Borgward has launched sales of two gasoline-powered crossovers, the BX7 and BX5. In May, its first electric vehicle -- the battery version of the BX7 ¨C went on sale with a starting price of 285,000 yuan after government subsidies.

The vehicles are assembled at Foton's renovated auto plant in Miyun, a suburb of Beijing.

Borgward¡¯s sales were small in 2017: the two crossovers combined recorded volume of 44,380 vehicles, according to the China Association of Automobile Manufactures. 

With limited sales, Borgward incurred a loss of 129 million yuan in the first quarter after losing 275 million yuan last year, according to Foton.

Borgward hasn¡¯t released year-to-date sales in China for 2018.

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