Circulation Association Derailed Three Tough Requirements for Audi’s Cheating

On 23 November, automotive dealership representative organization Chinese Automobile Circulation Association issues the point of view for Audi  on its public accounts. At the same time, president of the Circulation Association, Mr. Shen puts forward three tough requirements for Audi: cut sales targets, increase new product launch, control network scale and speed of development, strengthen dialogue with dealers.

Mr. Shen says himself will on behalf of Circulation Association and concern negative influence on the Audi dealers which the partnership between Audi with SAIC may bring, solve their differences through dialogue and to achieve win-win situation.

In fact, on 21 November , Audi's China dealers held a communication meeting in Foshan with Dr Voggenreiter, the Audi Germany director. According to the information by circulation association in the conference, Audi dealer investors represents appeal the following three points:

1, on December 1, Audi has to give a satisfactory reply to how to safeguard the rights and interests of the Audi dealers explicitly, , otherwise, the Audi dealers will stop the car from the manufacturer.

2, On December 1, if Audi failed to give clear and satisfactory reply, Audi dealers will held a press conference to expose the contradiction between Audi and dealers, and reserve the right of litigation.

3, Faw Volkswagen Audi sales division based on the unrealistic sales target and misleaded the dealer to invest lot of sales construction, make losses of dealer, Faw Volkswagen Audi sales division should compensate the loss of dealers.

  According to media reports, the compensation amount which other distributors required is about 20 billion Yuan. However, the direct face-to-face communication makes further anger of Audi dealers in China instead of having positive progress.

Today, Mr. Shen put forward three explicitly requirements for Audi on behalf of the circulation association:

The attitude is very clear: circulation association believes that Audi should improve the state of dealers’ existence by lowering sales target, introducing new products and strengthening the brand construction rather than blindly expanding channels by cooperating with SAIC.

It is understood that on 11 November, the resolutely "lightning marriages" between Audi and SAIC and the manufacture cooperation with Audi in Germany caused a stir in the whole circle of China auto. Three days later, on 14 November, Volkswagen made an announcement and confirmed cooperation with Audi.

The announcement asserts that on 11 November, SAIC signed memorandum with Volkswagen , that the introduction of the Audi brand products, manufacture sales and supply of new energy vehicles to Chinese consumers and the possibility of intelligent interconnection mobile travel service would be discussed.

There is no doubt that it confirms the “cheating hearsay” of Audi. Immediately it sparked a furious outcry from Audi China distributor.