Borgward optimistic on China and global expansion

German automaker Borgward Group is seeing its glory restored in China, with its performance stealing the spotlight in the world's largest auto market.

Established in 1919, it was one of the first automakers to introduce automatic gears, invented the compact sedan and was once Germany's largest car exporter.

Earlier last year, it decided to expand into China as part of its resurgence strategy. "The Chinese market is set to remain the biggest driver of growth in the automobile market," said Borgward CEO Ulrich Walker.

The choice has proven extremely successful. The company's first model, BX7, had received nearly 40,000 orders by the end of 2016, within several months of its debut in China.

Kevin Chen, Borgward China's executive vice-president, said the automaker is proud of its achievements in the past year. "We have won customers' trust, which will lay a solid foundation for our development in the future," he said.

The Borgward BX7 is the product of more than 10 years' research and development efforts. Sporting a 2.0-liter turbocharged direct-injection engine, it has three seating layouts to accommodate five, six or seven people.

Built on the Borgward Sustainable Platform, the 4,715 millimeter-long BX7's engine generates a top output of 165 kilowatts and a maximum torque of 300 newton meters. It has a top speed of more than 200 km/h.

Its design DNA is authentic, dynamic, elegant, precise and sophisticated.

The hallmark octagon-shaped radiator grille and characteristic wing design invoke a host of different wing shapes.

Borgward said the new SUV has impressed Chinese customers with its intelligent all-wheel-drive and smart interconnected system. The latter is the most advanced online communication and entertainment system currently available on the market.

Local production

The BX7 is produced at Borgward's Beijing plant, which has an initial annual capacity of 100,000 vehicles and can be expanded to 360,000 a year.

The plant features a smart system that is capable of producing eight different models, thus cutting time input while ensuring quality manufacturing.

Based on its initial success, the automaker has an ambitious product plan for this year. It will launch three more models: BX7 EV, BX5 and BX6. It plans to bring at least two models a year to the Chinese market for the foreseeable future.

Borgward also attributes its phenomenal performance to its fast-growing sales network, which reflects dealers' confidence in the brand. The network has expanded into over 140 stores covering many major cities around the country and the number is expected to reach 200 by the end of the year.

Borgward's after-sales service is also winning people's hearts.

In November, 2016, it announced that first time that buyers would enjoy free lifelong warranty as well as three years of roadside assistance.

This month, the automaker decided to reward its first 10,000 customers with a package that includes unlimited, around-the-clock services, unlimited distance of road assistance within three years, and discounts on spare parts and long-distance door-to-door service.

International standards

Borgward is poised to expand in its home country, starting the construction of a plant in Bremen, Germany this year. Production will start in 2018.

The Bremen plant will be based on the German government's Industry 4.0 strategy and standards.

CEO Walker said: "By taking this step, we are demonstrating our commitment to Germany as an industrial location and to our own heritage.

"Naturally, our return here is also of symbolic significance, as today marks the beginning of a successful cooperation between the city, the state and Borgward." However, Borgward will not confine itself to China and Europe, according to Walker.

"Our goal for the medium and long term is to be present not only in China and Europe, but in other major markets," he said.

As it enters new markets, the automaker plans to establish local production facilities, as a "worldwide footprint" is one of the three pillars of its development strategy.

The other two are building a valuable brand and applying German engineering.

Borgward's global supplier system is quickly taking shape. In March, 2016, it inked a deal with software corporation SAP, Bosch Auto Parts and LG Electronics for its intelligent electric mobility solution.

In November, the automaker joined hands with global auto parts supplier Faurecia to establish a joint venture to produce seats for its models.

"We are convinced that our global strategy will enable us to achieve our goal of regaining the status as a successful automobile manufacturer," Walker said. "The Borgward family will be competitive and our business model is based on sound financial and strategic foundations."

zhuanti@chinadaily.com.cn

(China Daily 01/23/2017 page18)