Borgward, a German brand that is being revived with Chinese backing, will launch sales of its BX7 model next month. The automaker may also restart production in Germany.

 

Borgward will begin sales of the BX7 in China after the Beijing auto show next month, the automaker said in a statement.

 

The midsize SUV is then brand's first modern vehicle. Once Germany's third-biggest automaker, Borgward last built a car in 1961.

 

The BX7 likely will be followed by the smaller BX5 compact SUV and the coupe-styled BX TS SUV. Both were shown as concepts at the Geneva auto show earlier this month and will be on display again at the Beijing show.

 

Borgward said its new plant in Beijing is ready to start production. It has an initial annual capacity of 160,000 vehicles that may rise to 360,000.

 

The company has signed up 100 dealers in China and expects to increase the number to 120 this year and to 200 in 2017 covering key cities of the Chinese market, the company said.

 

German production

 

Borgward CEO Ulrich Walker, a former top Daimler executive, said the brand will make a decision by the end of the year on a possible production location in Germany.

 

"Borgward is fully aware of its responsibilities as a German company," he said in an earlier statement. He said the company is conducting a feasibility study to examine potential locations, supply chains and processes.

 

Walker said the automaker will launch plug-in hybrid and full electric cars in German-speaking countries at the end of 2017. The EVs will have a range of over 250km (155 miles) and will be attractively priced, he said.

 

Borgward is based in Stuttgart and backed by Chinese commercial-vehicle maker Beiqi Foton Motor. It targets annual global sales of 500,000 vehicles in the midterm.

 

The company also said it plans a stock market flotation in Frankfurt in the near future.