Borgward to target broad middle class with BX7

For lovers of German cars, there is another choice: the Borgward's first model BX7 in China, which made its debut at the ongoing Beijing auto show.

Though Chinese customers may not be familiar with Borgward, the brand is the third-largest automaker in Germany.

In its heyday, the Bremen-based automaker had more than 23,000 people in its production halls and rolled out more than 1 million vehicles between 1924 and 1961.

Urich Walker, CEO of Borgward Group AG, said the brand can find its niche in the Chinese market as more and more Chinese customers desire quality products at prices more affordable than other German auto brands.

"We are seeing the development of a broad middle class that wants 'accessible premium' vehicles. And that's exactly where we will begin," said Walker, who was chairman and CEO of Daimler Northeast Asia in Beijing from 2006 to 2013. "The Chinese market is therefore set to remain the biggest driver of growth in the automobile market."

Borgward's first model, the BX7, is a product of more than 10 years of research and development efforts and is expected to be popular in the Chinese market, where SUVs are the fastest-growing segment.

The midsized SUV, available in 18 variants priced from 169,800 yuan ($26,130) to 302,800 yuan, sports a 2.0 liter turbocharged direct-injection engine, has two drive modes and three seating layouts to accommodate five, six or seven people.

The model is made at its Beijing plant, which has an initial capacity of 100,000 units a year and can be expanded to 360,000 units a year.

To reward its first customers, Borgward released a so-called "double 0+1/2" policy, which allows the first 10,000 firsthand buyers to enjoy a lifelong aftersales warranty and onboard 4G WiFi free of charge. The company will offer a half-price discount to take a used Borgward car back if the car owner wants to buy a second Borgward.

Besides the BX7 compact SUV, the BX5 will be released later this year.

Walker said the brand will "stick to our promise" to present at least two new models every year.

Borgward has built a sales network of around 100 dealerships covering many major cities around the country. It expects that number to reach 120 by the end of the year and 200 by the end of 2017.

The brand will also build an online sales channel to offer customers a better experience.

China is the starting point of the brand's revival but not its sole market, said Walker. He said in addition to China, India, Russia and South America, the brand is interested in entering the markets of the ASEAN region.

In its home base of Europe, the brand will launch products by the end of 2017, starting with new-energy vehicles including plug-in hybrids and electric vehicles.

"We are convinced that our global strategy will enable us to achieve our goal of once again becoming a successful automobile manufacturer by 2020," said Walker.

lifusheng@chinadaily.com.cn

(China Daily 04/28/2016 page19)