Right-protection dealership team expands, and Porsche’s union with SAIC may solve the dilemma

According to reporters, currently the number of FAW-Audi dealership team has expanded from 200 to 400. In the meantime, they have built a temporary organization and chosen contact persons in each province for better communication and concerted action. Analysts said to reporters that, for many years FAW’s cooperation with Audi makes sure of its profit in high-end market. In fact, compared with Audi, Porsche may attract more attention for its frequent contacts with SAIC.

Latest news comes around that near 400 Audi dealerships have joined the right-protection team, accounting for more than 90% of the total number. Currently, the situation is not clear. But some members from the dealership team told reporters that, “If Audi cannot give us a satisfactory explanation, we will stop picking up vehicles since December 1st to decrease losses.” According to his introduction, the current inventories in dealerships are able to cover the sales volume till spring festival. On the other hand, dealerships’ profits are made from sales, after-sales activities and manufacturers’ annual returning profits. The picking up volume and sales volume in December is quite important for dealerships, which may put pressure on their unity.

“Returning profit rate for luxury brand dealerships, including Audi, BMW and Benz, is generally 10%, contributing greatly for their annual profits.” Some insiders said.

It’s revealed that Audi is contacting with dealerships’ leader and offering preferential policies, such as selling FAW-Audi and SAIC-Audi products in parallel, to gain their supports in the cooperation.