Similar Pattern with Skoda----A Reveal of the Cooperation between Audi and SAIC-Volkswagen

Similar Pattern with Skoda----A Reveal of the Cooperation between Audi and SAIC-Volkswagen

It is confirmed that Audi will set up a 50:50 joint-ventured sales company with SAIC-Volkswagen. Resources from Auto Business Review said that, the formal news about the cooperation will be released in the middle of November. The new company will have separate selling channels and its first product is scheduled to be released in next April.

The negotiation between Audi and SAIC-Volkswagen began from half a year ago. It is Audi’s second partner in China, of which the forms of cooperation is similar to that of Skoda and SAIC-Volkswagen. The products will be manufactured by SAIC instead of the newly-built joint venture. There will be no worry for failure to acquire approval from the government.

Last May, Audi ended up its sales growth for 26 months since the March of 2013. In the second half year, terminal of dealers took an unprecedented privilege and end up its stabilizing price system. Last year, Audi sold a total of 57,09 million vehicles in China, which is 1.4% decreased year on year (global sales increased 3.6%) and is the first negative growth for Audi in China since it entered this market for 26 years.

In the first three quarters of this year, the global cumulative delivery of Audi brand is 1,408,800 units, which is 4.5% up from the 1347883 units a year earlier; while the sales of FAW-Volkswagen Audi in the first three quarters in China is 438,376 units, which is 6.3% increased year on year. However, it is more difficult for Audi to keep its position in China as NO.1, it was replaced by Mercedes-Benz through the first three quarters of this year. Benz regained the position of global NO.1 and had a surge sales number.

Audi want to keep its leading position in China, so to cooperation with SAIC-Volkswagen become necessary.

The performance of Audi since the middle days of this year is more changeful. In the first three quarters of this year, Audi continue to be the leader of luxury vehicles, among which A3 and Q3 made a huge contribution, while sales of A6L and A4L were looking blue, sales of the updating A4L slumped year on year, which is no benefit for Audi in the high-end brand competition for B and C level vehicles.

Thus to cooperate with SAIC-Volkswagen can help Audi to achieve self-transformation and expand its territory in China.

The new model to be released by SAIC-Audi remains unknown. According to Auto Business Review’s speculation, it would be A5 or Q2 or A7. Some imported models may also be included in its sales channel, the most possible one is Audi A5.

According to Auto Business Review, this move of Audi will make benefit for its development in China. More products and network, new ideas and new ways will help Audi to dominate the high-end car market again.