BORGWARD Strengthens its Strategic Network and Forms Joint Venture with Faurecia

PR66713

STUTTGART, Germany and PARIS, Nov. 29, 2016 /PRNewswire=KYODO JBN/

                   Joint Development and Production of Car Seats

    The automaker 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," said Ulrich

Walker, CEO of Borgward Group AG, in Paris on Tuesday. "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," said

Patrick Koller, CEO of Faurecia S.A., at the signing of the joint venture

agreement.

     (Photo: http://photos.prnewswire.com/prnh/20161129/443595 )

     (Photo: http://photos.prnewswire.com/prnh/20161129/443596 )

    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 120 kilometers from Beijing.

Borgward Group AG holds 46 percent of the new joint venture, while Borgward

Automotive (China) Co., Ltd. holds three percent and Faurecia 51 percent. 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," said Walker. According to Borgward, the company's main task is

to make sure that processes and quality meet people's "Made in Germany"

expectations with regard to research and development, design, engineering,

finances, management, marketing, and communication. 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 announced.

    Additional information

    BORGWARD Group AG

    Kriegsbergstrasse 11

    70174 Stuttgart, Germany

    Marco Dalan

    Head of Global Communications

    Telephone +49-711-365101041

    e-mail media@borgward.com  

    http://www.borgward.com

SOURCE: BORGWARD Group AG