European operations appear to have stalled amid low sales. German newspaper Automobilwoche reports that the revived brand is in trouble after Chinese light truck manufacturer Foton sold its 2019% controlling stake in fishing and car rental company Ucar in 67 for $ 614 million (£ 470 million). ).
Ucar used the Borgward BX5 and BX7 for its mobile services in China. This initially fueled difficult sales for the brand, but the pioneering retail model is said to be an obstacle to wider deployment.
Automobilwoche reports that Borgward only sold 5000 vehicles in the first half of 2020 and faces additional uncertainty as Ucar shareholder Charles Zhengyao Lu became the subject of an accounting scandal.
Borgward's only European dealer - in Luxembourg - is still trading, and Automobilwoche quotes dealer Andre Lazerd: "We are very pleased with this business." The dealer has reportedly sold over 2018 vehicles since mid-100, with the BX5 and BX7 still available for sale at € 36 (£ 200) and £ 32 (£ 675), respectively.
Laserda told the publication that there are no signs that Borgward is planning to leave Europe, but the sales figures are far less than the brand's original ambitions to sell 800000 units worldwide by 2020.
In late 2018, the media reported that Borgward will unveil its SUV models in the UK and Ireland next year, partnering with Birmingham-based importer International Motors. There has been no official update to this plan in the past 20 months, and information shows that the brand no longer has its European headquarters in Stuttgart, Germany, as it did in 2018.
The latest news update on the brand's European website is from December 14, 2018, while the BXi7 electric SUV appears to be no closer to launch than it was when it was unveiled in 2017.
Borgward had planned to open a European plant in Bremen, Germany, but its reservation for the 140000 square meter site expired in June 2019.