Borgward is experiencing serious issues following its reintroduction to the European market.

The historic German brand was revived back in 2015 with the intention of returning to Europe in 2018. While it did indeed make it to European shores, things have been far from ideal for the company.

According to a report from German publication Automobilwoche, Borgward has been facing various issues since China’s Beiqu Foton Motor, a subsidiary of BAIC, sold its 67 per cent stake in the automaker to Chinese ride-hailing and car-rental company Ucar in 2019.

It is claimed that the ride-hailing company doesn’t have the kind of innovative retail model that Borgward needs to drum up sales. In addition, Ucar billionaire shareholder Charles Zhengyao Lu is being investigated for an accountancy fraud.

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This year, Borgward has sold just 5,000 vehicles and currently operates just a single retail location in Europe, located in Luxembourg. What’s more, the brand doesn’t appear to be maintaining its headquarters in Stuttgart. At the time of the brand being revived five years ago, Foton Motor was aiming for 800,000 annual sales by 2020.

Under the ownership of Ucar, Borgward’s sales briefly improved as its vehicles were used for Ucar’s various services. However, this jump in sales proved to be short-lived.

Speaking to Automobilwoche, Jochen Sibert from JSC Automotive, a consultancy specializing in China, expressed concern about Ucar’s plans for the brand.

“I don’t understand at all why a supplier like Ucar has to build the cars itself,” he said. He also criticized the decision of selling vehicles through small stores instead of large dealerships. “Especially with an unknown brand, it is important to be able to look at and try out models.”

Salesman Andre Lacerda from the sole dealership in Luxembourg told Automobilwoche that “we are very satisfied with the business,” claiming the dealer has sold over 100 new Borgward SUVs since summer 2018. He also suggested used models are selling well and added there are no signs the brand is thinking about ending its European operations.