BORGWARD Group AG Officially Launched in China

Stuttgart/Beijing, 17 March 2016 - BORGWARD Group AG officially established BORGWARD China Co. Ltd in March. "Following the launch of our Asia and Greater China strategy in Hong Kong at the beginning of 2016, BORGWARD Group AG has now taken a further step in its arrival in China" - said the Chairman and Global CEO of BORGWARD Group AG, Ulrich Walker, on the sidelines of the kick-off event in Beijing. With the launch of the sales company, the classic German car brand is now fully operational in China. Following the launch of the BORGWARD Asia and Greater China strategy in Hong Kong at the beginning of 2016, BORGWARD has now taken a further step to establish the Group in China.

At the event, Walker introduced the Group’s B-G-W strategy and explained the global and Chinese market perspectives. The B-G-W global strategy involves an all-new business model that focuses on "Interconnection and resource sharing". The letters B-G-W stand for "BORGWARD brand heritage", "German engineering" and "Worldwide footprint". The strategy represents the BORGWARD brand’s innovative spirit as well as the integration of new energy, intelligent high-quality German products and global resources in order to push the brand’s deployment worldwide. "In order to respond in real-time to changes in the market and in personalised consumer demands, we will focus on building an intelligent production system and connected production facilities" - said Walker.

The new plant in Beijing is now ready for production. Occupying an area of 1.10 mln square metres, it has a maximum annual capacity of 160,000 units, which can increase to 360,000 units in the second phase. "We are building an advanced platform and a modular production system based on the smart manufacturing model" - said Walker. The new plant is based on the German Industry 4.0 concept, and will strictly comply with the most rigorous German manufacturing and quality management system standards. It also utilises the BORGWARD global verification system, with each model subjected to extensive testing, so as to ensure product performance.

With regard to the development of BORGWARD’s sales organization in China, Walker added, "We have successfully established partnerships with nearly 100 dealers to date. Moreover, this dealer network is expected to grow to 120 dealers by the end of 2016, and 200 in 2017, covering key cities of the Chinese market".

According to Walker, the BORGWARD BX7 is being positioned in China as a "German branded, wide-bodied intelligent SUV". The vehicle combines rigorous German engineering, advanced technology, reliability, a distinct sporty wide body, and outstanding performance and safety. The BX7 is expected to be launched at the Beijing Motor Show in April. Along with the BX7, the all-new BX5 near-series prototype and the BX6 TS show car will also be on show so that BORGWARD’s entire range of SUVs is.

CONTACT:

BORGWARD Group AG

Kriegsbergstrasse 11

70174 Stuttgart

Marco Dalan

Head of Global Communications

phone: +49 711 365 10 1044

e-mail: marco.dalan@borgward.com

www.borgward.com