BAIC reduce 100 million shares in Foton amid the emerging of Borgward

Gasgoo.com(Shanghai July 10) - Beijing Automotive Industry Corporation (BAIC) launched another shares reduction in Foton since the earlier one in November in 2014. According to the corporation’s plan, BAIC will give up no more than accumulative 100 million holdings in Foton in the next 12 months from May 26.

In fact, the shares reduction has always been in the timetable since last year’s November, with holdings having been reduced by 34 million to 925 millionunits. And after the new sharescutting movement, the final shares of BAIC holding in Foton will be 900 million.

A source close to Foton stated that BAIC will not give up that much of share in Foton, which has always been receiving much attention from BAIC, unless the shares reduction is one strategic movement.

On the other hand, Foton established an increasingly good relationship with a German brand Borgward newly emerged in China in March through a long period of preparation. A source close to Borgward stated that Ulrich Walker, the global CEO of Borgward said clearly that the brand will put into production in the mid of 2016 in Beijing and the productivity has been fully assured in whole car and engine production.

It is worth noticing that the register downer of Borgward is Foton, adding the possibility of Borgward joining Foton. While the BAIC hasn’t invested in Borgward, leaving the investment room for new fund for Foton’s next development.