Chinese automaker Foton announced a week ago that it will sell a 67-percent stake in Borgward to attract new investors and help the revived German automaker expand sales into new markets.
Foton acquired the rights to the Borgward brand in 2014 and helped fund its revival. Under the sale plan, Foton will keep the remaining 33 percent of Borgward.
Borgward's lineup is currently assembled at a plant in Beijing, China but the automaker's headquarters and engineering center are in Stuttgart, Germany. Borgward also plans to construct a plant in its historic home of Bremen, Germany. The original Borgward was founded in Bremen in 1890 and lasted until 1961.
Borgward vehicles are sold in China, Southeast Asia, the Middle East, South America and since June also in Germany. Borgward has said it intends to eventually sell cars throughout most of Europe but the automaker is yet to commit to a launch in the United States.
As Borgward is still adding new models and expanding into new markets, the automaker is currently running at at loss. According to Foton's financial statements, Borgward has suffered a loss of approximately $238 million for the first eight months of 2018.