(Yicai Global) Nov. 30 -- Chinese carmaker Beiqi Foton Motor Co. [SHA:600166] is looking to introduce new investors into its wholly-owned subsidiary, Borgward Group AG, and considers Baoneng Group a likely buyer, according to insiders familiar with Beiqi.
The automaker bought Borgward, the German car brand that went bust over 50 years ago, in 2014, spending EUR5 million (USD5.82 million) to take a 100-percent stake in the firm, before registering the brand in the US, China and India.
It unveiled the BX7 sports-utility vehicle in 2016 and sold over 5,000 units a month, seemingly reviving the European carmaker.
However, Beiqi’s financials show that it needs backing to keep Borgward alive, and will need a major cash injection to release the follow-up to the BX7.
Tian Yongqiu, an industry analyst, suspects Beiqi will only sell of limited equity in the division, as it poured time and money into the project early doors.