Manufacturing News

Borgward plans joint venture with Faurecia to build seats in Tianjin

Borgward Group AG, a German carmaker with Chinese backing, says it will form a joint venture with French supplier Faurecia to make seats for Borgward's vehicles in the north China port city of Tianjin.

Under an agreement signed Tuesday in Paris, the 49-51 partnership between Borgward and Faurecia initially will produce seats for the Borgward BX5 crossover to be sold in China.

Later, the plant will ship seats to a Borgward plant in Europe.

The Tianjin factory, with 800 employees, will produce as many as 400,000 seats annually after it reaches full capacity in 2020.

Borgward, once Germany's third-largest carmaker, was forced into liquidation in 1961. In 2014, Beiqi Foton Motor Co. acquired the rights to the Borgward brand. Foton is a subsidiary of state-owned Chinese automaker BAIC Group Corp.

Borgward builds its first product, the BX7 crossover, in Foton's renovated auto plant in Miyun, a suburb of Beijing. The BX7 went on sale in China in April with a starting price of 169,800 yuan ($24,650).

Borgward, of Stuttgart, plans to open more assembly plants in Bremen, Germany, and in Jiaxing of east China's Zhejiang province.

At the Guangzhou auto show in November, Borgward launched its second product, the BX5 crossover. The BX5, which is smaller than the BX7, will go on sale in China early next year.

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