(Yicai Global) Dec. 28 -- China's leading ride-hailing provider Beijing-based UCAR has struck a deal with state-owned Beiqi Foton Motor to invest CNY4 billion (USD584 million) in the latter's German auto unit Borgward to become its biggest shareholder.

UCAR and Borgward announced a partnership today to jointly develop a new auto retail pattern, online media Yixian under tech titan Tencent holdings reported. Foton announced on Oct. 8 the sale of a 67-percent stake in its wholly-owned unit Borgward on the Beijing Equity Exchange, of which UCAR became the buyer.

Borgward is a German carmaker with a history of nearly one hundred years. Foton acquired it in 2014 and it became its passenger car brand. Borgward, which owns production licenses for both traditional fuel and new energy vehicles, has research and development centers in China, Germany and the US, as well as car and engine plants meeting the German government's industry 4.0 strategy to automate and intelligentize production.

Borgward's performance is unsatisfactory amid an overall downturn in the automotive market, though it has advanced production lines and products. 

UCAR can help Borgward with its extensive sales network and rich application scenarios post-deal, industry insiders said.

Founded in 2015, UCAR used to be an internet car rental platform. It has now grown into an industry chain service provider engaged in three major sectors of internet travel, auto e-commerce and auto finance. 

The company's services span more than 300 cities nationwide, managing 400,000 vehicles for over 80 million users. 

Editor: Ben Armour