Chinese ride-hailing and short-term-rental provider Ucar will acquire a 67 percent stake in Borgward, the German brand revived by Beijing truckmaker Beiqi Foton Motor, for 4.11 billion yuan ($614 million).
Ucar is buying the majority stake from consultant Changsheng Xingye Enterprise Management Advisory, Ucar said Monday. In December, Changsheng Xingye purchased the 67 percent stake in Borgward from Foton for 3.97 billion yuan.
Borgward, once Germany's third-largest automaker, was liquidated in 1961. Foton purchased the rights to the Borgward brand in 2014.
Under Foton, Borgward launched the BX5 and BX6 gasoline-powered crossovers as well as the gasoline and battery-electric versions of the BX7 crossover. The vehicles are built at Foton's plant in Beijing.
Borgward's sales have remained limited. In the first 11 months of 2018, the brand delivered 32,942 vehicles, according to the China Passenger Vehicle Alliance, a Shanghai consultancy.
Borgward racked up heavy losses under Foton. In the first eight months of 2018, the brand lost 1.6 billion yuan after losing 2.7 billion yuan in 2017, according to information Foton disclosed last year.
Ucar, established in Beijing in 2002, operates in more than 300 domestic cities. In 2018, it generated operating revenue of 5.9 billion yuan and a net profit of 270 million.
