Sources said that the Beijing government is encouraging Xiaomi
In addition to the Borgward acquisition, Xiaomi
Borgward, a car brand founded in Germany in 2008, currently has its design and engineering teams located in Germany, but the vehicles are produced in China by Foton Motor. In 2014, Foton Motor acquired the brand from Borgward AG for 5 million euros. In March 2019, Ucar Inc. bought a 67 percent stake in Borgward for RMB 4.1 billion, although the final payment for the acquisition has not yet been made.
Because of recent issues with financial fraud in companies such as Luckin Coffee, Ucar Inc., whose chairman is Lu Zhengyao, the coffee brand’s former chairman, suffered a heavy blow. In June, Borgward is reportedly to go bankrupt after being acquired by Ucar Inc. two years ago.
Borgward’s factory is located in Miyun Park in Beijing and is surrounded by the factories of other notable car companies such as Foton Motor and Wandu. Borgward’s factory has had their production lines halted for more than a year already. The factory has a designed production capacity of 180,000 vehicles in Phase I and 360,000 vehicles in Phase II. It is qualified to produce both traditional fuel and new energy vehicles in China.