BORGWARD strengthens its strategic network and forms joint venture with Faurecia
|- Joint development and production of car seats|
Stuttgart/Paris - 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.
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.