Stuttgart, Germany – Borgward is strengthening its strategic network and has teamed up with the French automotive supplier company Faurecia to form a joint venture for the development and production of car seats and interior components.
“We are proud to intensify our cooperation with Faurecia, one of the world’s most successful and innovative automotive suppliers,” says Ulrich Walker, CEO of Borgward Group AG.
“As part of our expansion strategy – particularly in China, but also in Europe – we are delighted to cooperate with a renowned automotive brand such as Borgward, which has been revived. Our extensive experience with premium and SUV seats was the main reason for the establishment of this new joint venture in China,” says Patrick Koller, CEO of Faurecia S.A.
The joint venture Borgward Faurecia Auto Systems Co. Ltd. will develop and produce car seats. The long-term goal is also for Faurecia to develop the entire cockpit for Borgward. The joint venture partners plan to build a factory with about 800 employees in Tianjin, approximately 120km from Beijing.
Borgward Group AG holds 46% of the new joint venture, while Borgward Automotive (China) Co. Ltd. holds 3% and Faurecia 51%. The joint venture will initially produce the seats for the new Borgward BX5 and other models in China and later on intends to supply seats to Borgward for its vehicles to be assembled in Europe.
The investment in the joint venture is part of Borgward’s S-N-A-P (Smart Network Automotive Platform) strategy for the creation of strong partnerships and alliances.
“Our business model is based on a simple principle: Borgward outsources as many activities as possible, but keeps as many as necessary in its own hands,” says Walker.
Borgward has formed numerous partnerships in recent months, including with Bosch, Kuka, and LG. “
We will continue along this path and form additional partnerships and invest in joint ventures,” Walker says.
Source: Borgward Group AG