SAIC-Audi program resumed, to locally produce Audi A7

Shanghai (Gasgoo)- The program between SAIC Motor and Audi in China has recently been resumed, according to a source from a technology solution provider close to SAIC VW. In accordance with an agreement signed by two parties in 2016, they would build a joint venture to produce and sell Audi-branded models in this country. Reportedly, the Audi A7 will probably be the first locally-produced model by two parties.

On March 5, Volkswagen China announced that Fred Schulze, the current director of Audi's C-class and D-class SUV as well as crossover models, will take over Dr. Christian Vollmer's position in SAIC VW as technical executive vice president and  is going to take charge of the Shanghai-based JV's manufacturing, logistics and production management businesses.

On March 6, Matthias Mueller, former CEO of Volkswagen Group said at the 2018 Geneva International Motor Show that the group will try its best to extend cooperation with SAIC Motor and FAW Group. Before long, Audi released a statement saying that it has been discussing with SAIC Motor about future collaboration.

The German company has been making Audi-branded models in China exclusively with FAW Group. In November 2016, SAIC Group announced that it had signed agreement with Volkswagen Group to build a JV and will co-produce and sell Audis in China. The move triggered an uproar among FAW-VW dealers affiliated to FAW-VW. They expressed concern that the cooperation with SAIC Motor could have depressed their interests and even threatened to stop ordering new vehicles. Thus, the SAIC-Audi JV program was forced to be shelved to terminate the dispute with dealers.

In February 2017, the CADA (China Automobile Dealers Association) Audi Dealer Association was founded and soon released a statement requiring that Audi must stop assembling vehicles with SAIC Motor before the annual sales target of 1 million Audis is achieved. Finally, the crisis was ended with an agreement between Audi and dealers that the vehicles produced by SAIC-Audi will not be delivered in China before January, 2022.