Investors and entrepreneurs who have pondered the idea of bringing back a classic brand such as Studebaker, Packard, Duesenberg or even Hummer might want to take note of what's going on with Borgward.
Beiqi Foton, the Chinese automaker that in 2014 bankrolled the return of Borgward — liquidated in 1961 but once Germany's third-largest automaker — is now trying to offload two-thirds of the company to investors. That's despite selling more than 92,000 luxury SUVs since launch in 2016 and expanding into Europe this year.
Borgward sales got off to a promising start but are down 21 percent through August, despite the introduction of an electric SUV in May. Meanwhile, costs are rising as Foton moves forward on plans to build a plant in Bremen, Germany. This year, Borgward opened an r&d facility in Silicon Valley.
Given everything, Foton says Borgward suffered a loss of $232 million through August, which is enough to take some fun out of the venture.