Automotive manufacturer Borgward has teamed up with leading automotive supplier Faurecia. The two companies have formed a joint venture for the manufacture of interior components and car seats. Speaking about the deal, Ulrich Walker, CEO of Borgward Group AG said that Borgwars was proud to reinforce its cooperation with Faurecia, which is one of the most successful and innovative automotive suppliers in the world.
Patrick Koller, CEO of Faurecia S.A., said at the signing ceremony of the joint venture agreement that the new deal is the outcome of the company’s desire to expand globally, especially in markets like Europe and China. He said that the company has extensive expertise in premium and SUV seats and this is why the joint venture company will be set up in China, a growing market.
The joint venture company, Borgward Faurecia Auto Systems Co., Ltd. will specialize in the development and production of car seats and the long-term goal is for Faurecia to develop the entire cockpit for Borgward. As part of the joint venture, the two companies plan to build a factory in Tianjin which will employ 800 people.
Borgward Group AG will have a 46 percent stake in the joint venture, while Borgward Automotive (China) Co., Ltd. will have three percent and Faurecia will have a 51 percent stake. Initially, the factory will make seats for the new Borgward BX5 and other models in China and will later on manufacture seats that will be supplied to Borgward for the vehicles it assembles in Europe.
Borgward has decided to team up with Faurecia as part of its S-N-A-P (Smart Network Automotive Platform) strategy in order to create a network of strong partnerships and alliances. Generally, Borgward outsources as many activities as possible, while keeping necessary activities under its control, in order to ensure that manufacturing processes and quality can meet the “Made in Germany” expectations that customers have with regard to research and development, design, engineering, finances, management, marketing, and communication.
Borgward has formed many partnerships in recent months, including those with Bosch, Kuka, and LG. “We will continue along this path and form additional partnerships and invest in joint ventures,” Walker announced.
Hamid Moaref has always been fascinated by cars and the automotive industry. His family has a longstanding association with the industry and has been in the tire business for the past 35 years. Raised in Dubai, Hamid attended Capilano University in Vancouver where he graduated with a BBA in marketing before attending an intensive course in magazine publishing in 2005. He has been the publisher and chief editor of Tires & Parts magazine for the past ten years.
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